Will Resistance at $2 Abate Price Rebound?

Social sentiment towards XRP (XRP) has sunk into the “fear zone,” a fact that has preceded strong protests in the past.

Key takeaways:

• Social sentiment toward XRP has sunk into the “fear zone,” levels that have historically preceded strong rallies.

• XRP price must close above $2 on the daily chart to open the way towards $2.50.

XRP Sentiment Plunges

Market intelligence platform Santiment said on Monday that “XRP is seeing far more negative comments on social media than average,” increasing the likelihood of a “strong price rally.”

Related: Three data signals that show XRP trader demand has evaporated

The chart below shows that the last two times crowd fear was this low were on November 21 and December 5, and the price of XRP immediately rose 22% and 11% in those few days, respectively.

“Historically, this setup leads to price increases,” Santiment added.

“When retail trade has doubts about a currency’s ability to rise, the rise becomes significantly more likely.”

XRP has fallen 1.8% in the last 24 hours to settle below $1.85, taking the decline from its seven-year high of $3.66 to 49%.

Crypto analysts agreed with Satiment that XRP’s decline is not necessarily bearish.

“XRP sentiment is ugly again. But money doesn’t seem scared,” said analyst DefiPeniel in a recent X analysis referring to the perfect streak of inflows into spot ETFs since its launch.

As Cointelegraph reported, these investment products have surpassed $1.2 billion in assets under management with cumulative inflows of $1.13 billion.

This reinforces the long-term confidence of institutional investors despite the “boring” price action, DefiPeniel said, adding:

“Markets don’t bottom when vibes improve. They bottom when prices hold and sentiment breaks.”

Key XRP Price Levels to Watch

XRP must convert the resistance provided by the multi-month descending trend line at $1.92 into support to increase the chances of a sustained recovery.

The next major resistance lies between $1.96 and $2, where investors purchased $1.5 billion of XRP, according to Glassnode’s cost base distribution heat map.

The area between $2.10 and $2.50 would also pose a challenge to any recovery efforts. Note that this is where all the major moving averages (SMAs) are located: the 50-day SMA at $2.10, the 50-week SMA at $2.25, and the 50-week SMA at $2.50.

The XRP/USD pair is “still in a strong downtrend. The price was rejected several times between $2.50 and $2.70 (200 SMA and the downtrend line),”

The analyst added that the technical trend will remain bearish until a decisive breakout of the descending channel is achieved.

An accompanying chart shows that the upper boundary of the channel lies between $1.92 and $1.96, which must be broken to end the downtrend.

“Wait for a break above $2.50 to change the trend, otherwise expect a continuation lower.”

Meanwhile, the bears will try to keep the $1.92 resistance in place and then lower the price below $1.80. The next target below this is $1.75 (reached on December 19) and the April low of $1.61.

As Cointelegraph reported, losing the $1.61 support will increase the likelihood of XRP falling to $1.25 and subsequently to the psychological support of $1 in 2026.

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