XRP Price Forecast – XRP Could Drop Below $2 If $2.14 Support Fails

Highlights:

• XRP is turning bearish as bears put pressure on the $2.14 resistance
• Close below $2.14 resistance, could see XRP drop to prices below $2
• Risk-off sentiment due to the upcoming Fed decision on rates could trigger a selloff 

Currently, XRP’s price is $2.18, which marks an increase of 0.22% intra-day. This price action aligns with the rest of the cryptocurrency market, which is mostly flat today. However, this sideways action does not translate to outright bullish sentiment. 

According to CoinGlass data, XRP’s long/short ratio is 0.9205. This figure indicates that more traders are positioning for the price to tank in the short term. The ratio has remained below 1.0 for almost two weeks, a signal of rising bearish sentiment.

XRP Technical Indicators Turning Bearish

On a technical basis, XRP trades at 2.14, which resides just above a crucial support area of 2.05. Analysts believe that if these levels fail to be upheld, the asset may face accelerated declines soon. Price confidence will not erode further if these support levels are sustained.

The RSI or Relative Strength Index for XRP is currently at 47, indicating neutral territory. Currently, the RSI trend is downward. Since it has not yet reached oversold (generally accepted as below 30), there is potential for XRP to drop further before any technical rebound takes place.

Whale Activity Triggers Concerns of More XRP Selloffs

Another bearish signal for XRP is that whales are selling. Nearly 30 million XRP were transferred from an unknown wallet, amounting to roughly $64.4 million. Large deposits from wallets into exchanges are often perceived as selling signals. The speculation is that further downward pressure is inevitable. When weak technicals are paired with deposits, these deposits are seen as bearish indicators.

💥 BREAKING:

29,532,534 #XRP ($64.5M) TRANSFERRED TO #COINBASE FROM UNKNOWN WALLET.

EXCHANGE INFLOW — POSSIBLE SELL-OFF OR INTERNAL MOVE? pic.twitter.com/3lntxhKVM9

— STEPH IS CRYPTO (@Steph_iscrypto) May 4, 2025

Potential for Long-Term XRP Price Rally Remains Strong 

However, analysts believe XRP will be bullish in the long term. The focus is shifting to XRP relative to Bitcoin (XRP/BTC), where some technical indicators point towards the possibility of a significant breakout.

$XRP looks bullish: inverse Head & Shoulder breakout confirmed, bullish wedge breakout, key resistance flipped to support, and a higher low formed. Momentum building for a strong move up!#XRP #CryptoMarket pic.twitter.com/N3pkREFjpg

— Joe Swanson (@Joe_Swanson057) April 28, 2025

The XRP/BTC pair looks interesting on the chart as the Bollinger Bands, one of the popular volatility indicators, have contracted quite significantly. This squeeze is rare, particularly with such tight volatility, but if followed by explosive price movement, it is highly profitable.

🚨BRAKING

XRP/BTC is quietly setting up for a breakout.
Bollinger Bands are tightening—a classic sign that volatility is brewing.
Traders know: this kind of compression rarely ends quietly.
A 30% move could be on the horizon.#XRP #Bitcoin #Crypto #Altcoins pic.twitter.com/Qc4RQR59Ol

— Oracle (@hhhhh070) May 5, 2025

At present, the XRP/BTC pair is trading at 0.00002292 BTC. If the price breaks higher, traders estimate it could face resistance at 0.00003079 BTC, representing a 30% increase. Traders are opportunistic around this region since breakouts from squeezes are often quick and powerful.

Alongside all the uncertainty, XRP has managed to keep the confidence of technical traders who still believe in XRP’s residual strength. Patterns similar to the band squeeze are rare, but when they appear, they severely bias price action, and there is no doubt that XRP/BTC has ample room to appreciate value, at least in the intermediate timeframe.

Technical Analysis – XRP Price Breaches Hourly Support

XRP short sellers are taking control of intraday. On the hourly charts, XRP bears are applying pressure on the $2.14 support. If XRP closes below $2.14, prices below $2 could become a reality in the day. 

On the other hand, if bullish sentiment increases and the $2.14 support holds, a rally to $2.24 could follow. 

Recap

XRP is currently at a crucial crossroads. Sentiment appears bearish now, thanks to whale activity and shorts dominance, but the long-term outlook is bright. If the Fed cuts rates, there is a good chance that the broader market, including XRP, will rally.