Analyst: XRP Looks Weak — Key Support at $2.04, Downside to $1.35 if Broken
A market analyst (Mr. Xoom) warned that XRP remains weak despite a brief relief rally, trading near $2.08 and down over 3% in December. XRP sits below the 50-day MA (~$2.31) and 200-day MA (~$2.61), forming lower highs and lower lows since a July peak. Price is contained in a band between $1.85–$2.35 and faces heavy resistance at $2.20–$2.35. Mr. Xoom flagged a key support zone at $1.85–$2.00 and a critical level at $2.04; a breakdown could target $1.35. Other analysts offer alternative scenarios: Casi views $2.04 as the make-or-break support — holding it could push XRP through $2.41 toward $2.65 and open higher targets; losing it may lead to $1.64. On-chain signals are mixed: accumulation has returned after recent outflows, while Santiment reports elevated fear and social doubt similar to a prior setup that preceded a 22% three-day spike. Traders are advised to treat short-term bounces cautiously given weak broader market cues (e.g., Russell weakness) and XRP trading under key moving averages.
Bearish
The article outlines predominantly bearish technicals for XRP: price is below both the 50- and 200-day moving averages, the short MA has crossed under the long MA, and XRP has consistently failed at the $2.20–$2.35 resistance band. The presence of lower highs/lows since July and a descending trendline increases the probability of further downside; the analyst highlights a likely target near $1.35 if the $1.85–$2.00 support breaks. Broader market weakness (Russell index) and stalled recoveries across crypto strengthen the bearish case. Offsetting factors are limited: some accumulation on-chain and a Santiment signal of heightened fear that historically preceded sharp short-term spikes — which could produce fast, short-lived rebounds — but these do not negate the dominant downtrend. For traders: expect heightened volatility around $2.04 and the $1.85–$2.00 band. Short-term trades should prioritize risk management (tight stops, smaller position sizes); a confirmed break above $2.65–$2.75 and reclaim of the 50-day MA would be required to shift the bias toward neutral/bullish. Historically, similar setups (broken MAs, persistent failed retests) have led to extended corrective phases or capitulation before any sustainable reversal, so the near-term outlook is negative while a medium-term recovery remains conditional on clear technical breakouts.