Analyst Says XRP Still Not Looking Hot, Reveals Critical Levels to Watch

A prominent market analyst has suggested that XRP is still not looking hot despite the recent recovery push.

Notably, XRP continues to face pressure around the lower end of the $2 range, and broader market sentiment remains uneasy. At press time, XRP trades at $2.08, down over 3% in December. Currently, the bears aim to push the price below the $2 support

XRP Not Looking Too Hot

According to Mr. Xoom, the stock market, especially the Russell index, has not shown the kind of strength that usually supports a solid crypto rally. Because of this setup, he urged traders to approach every short-term bounce with caution.

Price Holding Below Critical MAs

Data from his chart shows why he holds this sentiment. Currently, XRP trades under the 50-day moving average at about $2.31 and the 200-day moving average near $2.61 at the time of the analysis.

This confirms a downtrend, as the short-term average has already crossed below the long-term one. Moreover, XRP’s price also struggles inside a heavy resistance area between $2.20 and $2.35, which has rejected every recent attempt to recover.

XRP 1D Chart | Mr XoomNotably, XRP climbed to the $3.6 peak in July, but it lost momentum and started forming lower highs. Sellers stepped in around the 0.702 Fibonacci level near $3.00, and the trend eventually reversed

Since then, XRP has created a clear pattern of lower lows. A sharp sell-off recently pushed the price into the $1.8 area in late November before it bounced back toward current levels.

Meanwhile, a descending trendline from the summer peak still guides the market, and it aligns with a projected downside target around $1.35 if the price breaks below the $1.85 to $2.00 support range. For now, the market continues to move inside a broad band between $1.85 and $2.35, and each move toward the top of that range has stalled.

XRP’s Potential Paths

However, while Mr. Xoom remains cautious, other analysts see room for a different outcome. For instance, market watcher Casi pointed to XRP’s bounce from a local 0.618 retracement, which introduced a possible bullish scenario.

She expects XRP to retest the macro 0.50 Fibonacci level at $2.04, which she called the most important support in this correction. She believes the market will reveal its next major direction at this level.

Casi outlined two possible paths. If XRP holds $2.04, she expects the price to push through $2.41 and climb toward $2.65, which would signal the start of a new upward wave with targets between $7 and $10. If XRP loses $2.04, she expects a deeper move toward $1.64, which lines up with the macro 0.618 retracement and would complete the correction before a larger rally begins.

XRP Sentiment Turns Sour | SantimentThe last time XRP faced similar fear, the price jumped 22% in three days before greed took over and the rally faded. Santiment believes the current setup looks similar and may offer another opportunity.