XRP Price: Crucial Moment – Will it Plunge to $2 or Witness a Powerful Reversal?

The **XRP price** currently sits at a pivotal point. Investors keenly watch whether this altcoin will continue its descent towards the critical $2 mark or initiate a powerful reversal. This detailed **XRP analysis** delves into the on-chain metrics and technical indicators shaping its immediate future. Many factors suggest a potential further sell-off. However, key support levels could trigger a significant bounce. We explore the data to provide a comprehensive **XRP forecast**.

XRP Downtrend: Investor Caution Grows in the Crypto Market

The **XRP price** extended losses from a sharp sell-off last week. The altcoin’s price is down 1.78% over the last 24 hours. It traded at $2.78 on Monday. A prevailing risk-off sentiment affects the broader **crypto market**. Furthermore, a decline in on-chain activity suggests XRP could remain in a downtrend. This trend might persist for the next one to two weeks. However, a reversal could occur if key support levels hold.

Investors are clearly entering a risk-off mode. The Crypto Fear & Greed Index now sits in the “fear” zone at 46. This marks a drop from “neutral” levels last week. It was in “greed” territory just 30 days ago. Data from Alternative.me confirms this growing investor caution. This fear significantly impacts the **crypto market** sentiment.

The fear is also evident in declining on-chain activity. The number of active addresses has plummeted. It fell to approximately 19,250 on Monday. This figure was $50,000 in mid-July. This metric tracks wallets actively interacting with the XRP Ledger (XRPL). These interactions include sending or receiving XRP. Therefore, such a significant drop signals reduced risk appetite. This leaves XRP vulnerable to further sell pressure.

Declining investor interest also shows in the futures open interest (OI). OI pulled back significantly to $7.7 billion. It was $10.94 billion over the same period. Diminishing OI often implies a lack of investor conviction. This could increase the likelihood of the **XRP downtrend** continuing in the short term. The market awaits stronger signals for a sustained recovery.

Critical XRP Analysis: Will $2.70 Hold for the XRP Price?

Despite weak fundamentals, the technical setup projects a possible rebound. This rebound depends on the $2.70 support level holding firm. Otherwise, an extended drawdown toward $2 could play out. The **XRP price** chart shows a descending triangle pattern. This pattern formed on its daily chart since the July rally. XRP reached a multi-year high of $3.66 during that period. This pattern features a flat support level. It also has a downward-sloping resistance line. A descending triangle often forms after a strong uptrend. It typically acts as a bearish reversal indicator. Generally, the setup resolves when the price breaks below the flat support level. It then falls by as much as the triangle’s maximum height.

Bulls are struggling to keep **XRP price** above the triangle’s support line at $2.70. If they succeed, the price could rise. It might break the upper trendline at $3.09. This level coincides with the 50-day simple moving average (SMA). It also aligns with the 0.618 Fibonacci retracement level. This breakout would confirm bullish momentum. It could potentially trigger a rally. The target would be the apex of the prevailing chart pattern. This apex sits around $3.70.

XRP Forecast: Reversal Potential or a Plunge Towards $2?

Losing the crucial $2.70 support could trigger another significant sell-off. The first line of defense then appears between $2.6 and $2.48. This demand zone includes the 100-day SMA and the 200-day SMA. A breakdown of this level would be concerning. It would likely see the **XRP price** fall toward a downside target. This target sits at around $2.08 over the next few weeks. This represents a 25% drop from current price levels. Therefore, the $2.70 mark is absolutely vital for the immediate **XRP forecast**.

The liquidation heatmap provides further insights. It shows **XRP** buyers stepping in at $2.70. This indicates some buying interest at this level. Large clusters of ask orders are also sitting between $2.87 and $3.74. These represent significant resistance points. They could cap any upward movement. Conversely, if demand at $2.70 falters, the path to $2 becomes clearer. This highlights the delicate balance in the market.

Key Indicators Shape the XRP Price Outlook

Other technical indicators also contribute to the **XRP analysis**. As Crypto News Insights previously reported, XRP’s Moving Average Convergence Divergence (MACD) points to a potentially bearish crossover. This crossover is anticipated in September. A bearish MACD crossover often signals further price declines. It risks a drop toward $2.17. This reinforces the bearish sentiment seen in other metrics. Consequently, traders should monitor these indicators closely. They provide crucial context for the overall **XRP forecast**.

In summary, the **XRP price** stands at a crossroads. Declining on-chain activity and waning investor interest suggest a potential continuation of the **XRP downtrend**. However, the $2.70 support level remains a critical barrier. A strong hold here could spark a recovery. Conversely, a breach could send XRP tumbling toward $2.08. Investors must conduct their own thorough research. Every investment and trading move involves inherent risk. This article offers no investment advice or recommendations.