XRP Price Faces Resistance at $2.65, Risk of Decline

XRP price showed initial strength by climbing above $2.60 and reaching a high of $2.6972, following similar movements in Bitcoin and Ethereum. However, the rally proved unsustainable as the cryptocurrency encountered significant selling pressure around the $2.65 resistance level. The subsequent decline saw XRP break below the 23.6% Fibonacci retracement level of the recent move from the $2.327 swing low to the $2.6972 high, indicating weakening bullish momentum.

The technical damage intensified with a break below the bullish trend line that had provided support at $2.6350 on the hourly chart of the XRP/USD pair, based on data from Kraken. This breakdown below trendline support, combined with the price falling below both $2.60 and the 100-hour Simple Moving Average, created a technically vulnerable position for the cryptocurrency. The simultaneous breach of these multiple support levels suggests a shift in market sentiment from bullish to bearish in the short term.

For XRP to regain bullish momentum, it must overcome several key resistance levels. The immediate resistance sits near $2.620, followed by the more significant $2.650 barrier that recently halted the upward move. A clear break above $2.650 could potentially push the price toward $2.6880 resistance, with further gains potentially testing $2.720 and $2.7650 levels. The ultimate major hurdle for bulls remains near the $2.80 psychological level.

Conversely, if XRP fails to reclaim the $2.650 resistance zone, the risk of further decline increases substantially. Initial support appears near $2.5650, with more critical support at the $2.550 level. A decisive break and close below $2.550 could trigger additional selling pressure, potentially driving the price toward $2.5120, which represents the 50% Fibonacci retracement level of the recent move from $2.327 to $2.6972. Below this, the next major support sits at $2.450, with further declines potentially targeting the $2.40 level.

The technical indicators paint a concerning picture for XRP in the near term. The hourly MACD for XRP/USD is now gaining pace in the bearish zone, indicating increasing downward momentum. This bearish MACD reading suggests that selling pressure may be intensifying rather than abating. Meanwhile, the hourly Relative Strength Index (RSI) has fallen below the critical 50 level, signaling weakening buying interest and potential for further downside.

These technical signals align with the price action that shows XRP struggling to maintain levels above key moving averages and trendline support. The combination of bearish MACD momentum, RSI below 50, and price trading below the 100-hour Simple Moving Average creates a challenging environment for bulls. Market participants are closely watching whether XRP can hold above the $2.50 support level, as a break below this psychological barrier could accelerate the decline toward lower support zones.