XRP has continued to trade near the $2 level for roughly 14 months, establishing a prolonged consolidation zone as market participants monitor for signs of a trend shift.
The cryptocurrency entered a correction phase after a rally that began in late 2024, with the $2 area emerging as a key support zone. Despite multiple attempts to break lower, selling pressure has failed to sustain a decisive move below this level, according to technical analysis.
Funding rates on major cryptocurrency exchanges have remained predominantly negative since December, based on data from Binance. Negative funding rates typically indicate a higher concentration of leveraged short positions, a condition that has historically preceded price reversals in XRP.
Crypto analyst Darkfost noted similarities between current market conditions and April 2025, when XRP reversed higher after forming a base near the same price level. In that instance, elevated short positioning contributed to upward price movement as positions were unwound.
Historical data shows two prior periods in which negative funding rates coincided with price increases for XRP: between August and September 2024, and again in April 2025.
From a technical perspective, XRP remains capped below a descending resistance trendline and a horizontal resistance zone that aligns with a key Fibonacci retracement level. These barriers continue to limit upside momentum.
On the weekly chart, XRP is trading below its 9-week Simple Moving Average, reinforcing the current consolidation structure. However, the Relative Strength Index (RSI) has displayed bullish divergence, suggesting weakening downside momentum despite stable price action.
Market analysts say a weekly close above the identified resistance zone would signal a technical breakout and potential trend reversal. Conversely, a sustained move below the long-held $2 support level could open the door to further downside.
XRP was trading near $2 at the time of writing, according to CoinGecko.
