XRP Short-Term Outlook: Bounce, Breakout, or Further Decline

As XRP tests the $2.00 level, traders weigh whether the current bounce signals a trend reversal or a new accumulation phase.

Rich by Coin

2025-12-20

XRP is trading around $1.94 after weeks of declines, with the recent bounce coming after price tested the $1.80 support zone, which has historically acted as a demand area. The short-term view shows a recovery on the 2-hour chart, but the move is unlikely to indicate a sustained uptrend just yet, given the broader technical backdrop.

Despite the bounce, the structure remains fragile: XRP remains below the $2.00 psychological level, and the former support at $2.00 has now turned into resistance. Momentum indicators are approaching overbought territory on short timeframes, suggesting the current move may be a relief bounce rather than a trend reversal. Without a clean reclaim of $2.00–$2.05, upside in the near term remains limited.

On the daily chart, XRP is clearly trading inside a descending structure, with price below the descending trendline. The market is printing lower highs and lower lows, and the strong breakdown in October confirmed a shift from expansion to correction. Since then, XRP has failed to reclaim any major resistance level, which keeps the broader bias neutral to bearish. In other words, the trend has not flipped yet.

Key levels to watch include support at $1.80 (with $1.60 as the next downside if $1.80 fails). Resistance at $2.00, $2.20, $2.50, and $3.00.

Is XRP a good buy right now? There are two scenarios. Scenario 1 emphasizes cautious accumulation for long-term holders comfortable with volatility and a plan to average into positions, with buying near $1.80–$1.95 as a partial entry. Scenario 2 stresses waiting for confirmation: a daily close above $2.20, a break of the descending trendline, and rising volume confirming demand.

For traders, patience and a disciplined approach appear prudent until a clearer buy signal emerges. A bullish shift would require breaking above the $2.20–$2.50 region, after which higher prices could be more justified by sustained demand. Until then, XRP remains in a decision mode, with a potential accumulation case for long-term investors against a backdrop of ongoing volatility in the broader market.