Author: CryptoFlashNews AI
Edited, Fact Checked By: CryptoNewsFlash Editor
XRP Price at Make-or-Break Moment: Will $2 Support Hold or Collapse?
XRP is flirting with disaster. The sixth-largest cryptocurrency has slumped to $2.13, down 11% this week, as bearish technicals and macroeconomic tensions converge. Analysts now warn that a close below $2.077 could trigger a cascading sell-off toward $1.75—a level last seen in April.
The Bearish Case: Charts Scream Caution
A grim technical outlook is fueling the downturn. Prominent analyst MasterAnanda highlighted that XRP has decisively broken its rising channel on the daily chart, with three consecutive closes below the lower trendline—a classic breakdown signal.
Critical Supports:
$2.077: May 31 low (hourly chart).
$1.92: 0.236 Fibonacci retracement.
$1.75: April swing low (must-hold level for bulls).
The Chaikin Money Flow (CMF) at -0.17 confirms sustained capital outflows, while the MACD’s recent bearish crossover suggests momentum is fading fast. Even the Relative Strength Index (RSI) at 39 hints that XRP isn’t yet oversold, leaving room for further downside.
“It looks primed for a rebound, but the correction likely isn’t over,” MasterAnanda cautioned in a TradingView post, noting that low trading volume during the decline points to “apathy, not capitulation.”
Macro Headwinds: Inflation Data Ignored
Ironically, the sell-off comes despite positive U.S. economic data. April’s Core PCE inflation cooled to 2.5%—the lowest since March 2021—yet crypto markets shrugged it off amid renewed trade tensions. A federal appeals court recently suspended a ruling blocking President Trump’s tariffs, sparking fears of renewed trade wars.
The uncertainty has hit leveraged traders hardest: $30 million in XRP long positions were liquidated in 24 hours, per CoinGlass data. Open Interest (OI) plummeted 18%, signaling mass exits from futures contracts.
The Bullish Silver Linings
Not all hope is lost. On-chain data reveals whale accumulation at record highs, with 300,000 wallets now holding 10,000+ XRP. Institutional interest also persists, evidenced by Brazil’s landmark XRP ETF (XRPH11) and Nasdaq’s new XRP Futures ETF.
AdamIdris2, another respected chartist, argues this pullback is merely “Sub-wave C of Wave 2”—a textbook Elliott Wave correction before a larger Wave 3 rally. His target? $3+ if XRP reclaims $2.27.
What’s Next?
All eyes are on two scenarios:
Breakdown: A daily close below $2.077 opens the floodgates to $1.75.
Rebound: Holding $2.10 and breaking $2.20 could fuel a relief rally to $2.57 (0.618 Fib).
“The next 48 hours are critical,” says Angela_altair, a TradingView analyst. “Either we see capitulation or a vicious short squeeze.”
Sources:
XRP Price Prediction for May 31 - U.Today
XRP Price Prediction: Can XRP Rebound After Inflation Dip and Bearish Breakdown? - BraveNewCoin
XRP Price Risks Crash Below $2 As Correction Takes Hold, Here’s Why - NewsBTC