Here's Why XRP Price May Crash Below $2 Despite Today's 4% Gains

·

As of June 9, XRP price has seen a 4% increase, trading at $2.26, aligning with a broader recovery across the cryptocurrency market. This upward movement follows Bitcoin (BTC) reclaiming the $107,000 level, injecting short-term optimism into altcoin valuations. However, while the current momentum appears positive, it remains heavily dependent on Bitcoin’s ability to sustain its rebound. Should BTC falter, ripple effects could quickly dampen sentiment across altcoins—including XRP.

Despite today’s gains, growing technical and market structure concerns suggest that XRP may be on the brink of a downturn. Analysts warn that without a decisive breakout above key resistance levels, the token could reverse course and drop below $2, potentially extending losses toward $1.70.

Technical Resistance and Weak Bullish Momentum

XRP’s recent 4% intraday gain was fueled partly by news of the XRP Ledger’s adoption by Web3 Salon, a move aimed at advancing blockchain innovation in Asia. While positive, this catalyst has not been strong enough to push XRP beyond a critical resistance zone.

The price has repeatedly tested the 50-day Simple Moving Average (SMA) at $2.27 since late May but has failed to close above it. This persistent rejection signals weak bullish conviction. Traders appear eager to take profits near this level, indicating limited appetite for sustained upward movement.

👉 Discover how market momentum shifts can impact your digital asset strategy.

A similar pattern emerges in the Relative Strength Index (RSI), which continues to hover below the 50 midpoint—a threshold that separates bullish from bearish momentum. The inability of the RSI to sustain a close above 50 reinforces the idea that buying pressure is insufficient to drive a meaningful rally, even amid ongoing developments in the Ripple vs. SEC legal case.

Bearish Chart Pattern: The Descending Triangle

One of the most concerning technical formations currently shaping XRP’s trajectory is the descending triangle. This pattern is typically bearish and suggests that downward pressure is building as each price peak gets progressively lower, while support remains flat.

If XRP loses its foothold at the lower trendline near $2.12, a breakdown could trigger a swift decline toward the next major support level at $1.79. Historical precedents show that such breakdowns often accelerate due to automated selling and leveraged position liquidations.

BitGet analyst Ryan Lee shares this cautious outlook, warning that XRP could dip as low as $1.70 in the short term.

“XRP, benefiting from regulatory clarity and institutional interest, shows bullish stability around $2 but risks a dip to $1.70 short-term; its long-term growth depends on legal outcomes, with prices likely ranging between $1.70–$3.69, averaging $2.50 by June 2025.”

The Death Cross: A Warning Sign for Traders

Another red flag for XRP investors is the recent formation of a "death cross" on its price chart. This occurs when the 50-day moving average crosses below the 200-day moving average, signaling a shift from bullish to bearish long-term momentum.

While not an immediate sell signal, the death cross has historically preceded extended downtrends in various assets. In XRP’s case, its emergence adds weight to growing bearish sentiment, especially when combined with weak volume and lack of breakout conviction.

With bearish momentum gaining strength, buyers may remain sidelined, further increasing the likelihood of a drop below $2.

Excessive Long Positioning: A Recipe for a Squeeze?

Market data reveals a dangerously skewed positioning among derivative traders. According to Coinglass, the long/short ratio on Binance stands at 2.45—meaning over 72% of traders are betting on higher prices.

On OKX, the imbalance is even more pronounced, with three long positions opened for every one short. The top trader ratio also leans bullish at 1.59.

While widespread bullish positioning may seem encouraging, it often precedes sharp corrections. In highly leveraged markets, a sudden price drop can trigger a cascade of long liquidations, forcing traders to sell at unfavorable prices and accelerating the decline.

👉 Learn how to protect your portfolio from volatility-driven liquidations.

This phenomenon—known as a "long squeeze"—could push XRP below $2 and into the $1.70 support zone faster than anticipated, especially if Bitcoin fails to hold its gains.

Frequently Asked Questions (FAQs)

Why might XRP price drop below $2?
Multiple bearish signals—including a descending triangle pattern, rejection at the 50-day SMA, and a recent death cross—suggest downward pressure is building. Without a strong breakout above $2.27, a decline below $2 becomes increasingly likely.

What is the key resistance level for XRP?
The primary resistance lies at $2.27, corresponding to the 50-day SMA. A confirmed close above this level could reignite bullish momentum and open the path toward $2.50 or higher.

How does long/short ratio affect XRP’s price?
With over 70% of traders holding long positions, the market is vulnerable to a long squeeze. If prices fall unexpectedly, automated liquidations could amplify the downturn.

What is the significance of the death cross for XRP?
A death cross indicates weakening long-term momentum and often precedes extended bear markets. While not an immediate crash signal, it warns of structural weakness beneath short-term price movements.

Could regulatory developments support XRP’s price?
Yes. Positive outcomes in Ripple’s ongoing legal battle with the SEC could boost investor confidence and attract institutional capital. However, until clarity is achieved, uncertainty will continue to weigh on sentiment.

What is the short-term price forecast for XRP?
Analysts project a potential dip to $1.70 in the near term if support at $2.12 breaks. Conversely, a breakout above $2.27 could shift sentiment and target $2.50–$3.69 over time.

Core Keywords

With technical indicators flashing caution signs and market positioning appearing overly optimistic, XRP investors should remain vigilant. While short-term gains offer hope, structural weaknesses suggest a correction may be imminent.

👉 Stay ahead of market shifts with real-time analytics and secure trading tools.