XRP price drops below $2 – can investors turn this into a 13% rally?

XRP continued its decline after failing to turn recent price strength into a sustained rally. This altcoin appeared to be poised for an upward move while being pressured into a bearish structure.

That setup collapsed as selling pressure returned. However, investor behavior suggests that XRP may have a chance of a reversal.

New XRP holders cause concern

XRP is showing the first signs of a possible trend reversal with a positive divergence forming on the Chaikin Money Flow indicator. During the last 10 days, the CMF recorded a higher low while remaining… The price of XRP is getting The lowest lows. This divergence indicates that the rate of accumulation is increasing despite the drop in prices, which reflects the growing interest of buyers.

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A high CMF generally indicates strong capital inflows even during corrective periods. In the case of XRP, this pattern suggests that sellers may lose control while demand is quietly growing. Although price action remains weak, continued accumulation often precedes reversals, setting XRP up for a possible recovery if broader market conditions stabilize.

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The general momentum indicators indicate the growth of the growth network. Historically, the creation of new addresses has been a major driver of XRP price growth. The increase in participation symbolizes the entry of new capital into the system, and this influx supported the upturns in the previous stages of recovery.

Currently testifying New XRP addresses It fell to a 13-month low of 3,090. This sharp contraction signals uncertainty among potential investors. Weak demand reduces liquidity support and restricts bullish incentives. So without renewed network growth, price recovery attempts remain fragile and vulnerable to renewed selling pressure.

The price of XRP may see a further drop

XRP is trading near $1.95 at the time of writing after failing to break out of the falling wedge pattern. This pattern showed an expected upward continuation. However, this hypothesis collapsed as the general market weakness returned, invalidating the positive outlook and reinforcing the bearish technical bias.

A recovery from the lower shadow earlier on Monday indicated that the holders of the coin absorbed the selling pressure. That optimism quickly faded as the price resumed its decline. XRP is now trading below $2.00 and just above $1.93. Losing this level can open the door to a decline towards $1.86.

Reversing the bearish outlook requires a decisive recovery. XRP must recover $2.00 and close above this level to restore confidence. A confirmed breakout would have supported a move toward $2.25, according to Wedge’s forecasts. Currently, even more than $2.00 will invalidate the current bearish outlook and reduce the risk of a pullback.