XRP Faces Key Resistance at $2.8 as Technicals Turn Bearish

XRP faces substantial selling pressure as it trades below two critical resistance levels, with the token priced at $2.27 at press time, down 6% in the past 24 hours and over 19% in the last week. The current range places the asset just under two important price barriers: a previous support level near $2.4 that has turned into resistance, and the more significant 0.618 Fibonacci retracement level positioned near $2.8. Analyst Lark Davis emphasized the importance of these technical levels, stating that ‘XRP is facing two major resistances right now – Previous support, now acting as resistance – 0.618 Fib right above it.’

The failure to reclaim the $2.4 level in recent weeks has created a concerning technical pattern, with the $2.8 Fibonacci level proving particularly stubborn during past rally attempts. Davis noted that ‘Bulls need to punch out a weekly close above ~$2.8’ to prevent further downside, highlighting the critical nature of this resistance zone. The repeated failure to break through these levels has increased selling pressure and created a technically vulnerable position for the cryptocurrency.

Multiple technical indicators are flashing warning signs for XRP, with a bearish crossover forming on the daily chart as the 50-day moving average has dropped below the 100-day moving average. This ‘death cross’ pattern has appeared three times earlier this year, each instance followed by sharp declines, with the most recent occurrence preceding a 46% drawdown. According to analyst Steph Is Crypto, this marks the fourth bearish cross of the year, suggesting historical patterns may repeat.

The MACD line has moved below its signal line on the weekly chart, with red bars on the histogram growing to show increasing downside momentum. Similar technical configurations in the past have led to extended periods of lower prices. Meanwhile, the RSI has dropped to 44, falling below the crucial 50 mark that typically separates bullish from bearish territory. This represents a significant decline from earlier weeks when RSI reached 57, indicating substantially reduced buyer strength and momentum.

The combination of these technical factors creates a concerning outlook, with XRP remaining below both key moving averages and the price structure suggesting continued weakness unless buyers emerge with significant volume. The growing red bars on the MACD histogram specifically point to accelerating downward momentum that could challenge lower support levels if not reversed soon.

Should XRP fail to hold above current levels, traders are watching $2.1 as the next significant support zone, positioned just above the psychological $2 handle. Below that threshold, attention shifts to $1.78 as a potential safety net. Conversely, if momentum shifts upward, the $2.8 resistance remains the critical level to break, with a close above that threshold potentially improving the price structure and opening a path toward $3.

Despite the bearish technical outlook, Ripple continues to expand its institutional services through strategic partnerships. The company recently announced an agreement with Absa Bank in South Africa, bringing Ripple’s custody technology to the institution’s digital asset operations. This partnership represents Ripple’s ongoing push into enterprise and institutional services, potentially providing fundamental support beneath the current technical weakness.

Separately, Ripple is collaborating with Immunefi to strengthen security on its XRP Ledger lending protocol, addressing potential vulnerabilities and enhancing the network’s reliability for institutional adoption. These developments in South Africa and across the XRP Ledger ecosystem demonstrate Ripple’s continued focus on building infrastructure and partnerships that could support long-term value, even as short-term technical factors create headwinds for the XRP price.