XRP is still facing pressure as it faces correcting below the $2 mark, but technical indicators suggest the asset is on the cusp of a major capital inflow with the $2.5 resistance in sight.
The asset is showing a critical bullish signal as the TD Sequential indicator turns positive on the weekly chart, suggesting the token may be entering a potential reversal phase after weeks of downward pressure, according to insights by Ali Martinez shared in an X post on December 5.
Notably, the TD Sequential is a timing tool that flags when trends are losing strength and may be ready to reverse. Its current bullish setup suggests XRP’s recent selling pressure is fading and that the downtrend may be nearing an end.
The market structure supports this shift, with XRP tightening its range through late November and showing reduced downside momentum. The latest weekly candle points to an early reversal, strengthening the case for a move higher if buyers step in.
If momentum builds behind this technical trigger, the next major area of interest sits near $2.50, a zone that previously acted as a pivot during the earlier stages of the autumn rally.
XRP social sentiment
However, while this technical structure suggests a possible rebound, the same outlook is backed by social sentiment. To this end, insights by Santiment indicate that XRP has dropped 31% over the past two months and is now facing its most intense wave of fear, uncertainty, and doubt since October.
The analysis shows a surge in days marked by abnormally high bearish commentary, or “Fear Zone” signals, highlighting a sharp shift in crowd expectations even as Bitcoin sentiment remains relatively firm.
Historically, these fear spikes have coincided with short-term price rebounds. The last comparable cluster of bearish sentiment appeared on November 21, when the cryptocurrency quickly rallied 22% over the following three days before enthusiasm flipped toward greed and halted the move.
With sentiment again deeply pessimistic, analysts suggest conditions may be forming for another counter-trend bounce. If crowd anxiety unwinds as it did in late November, XRP could see a relief push, though sustained upside would require the market to avoid slipping back into the “Greed Zone” that previously capped momentum.
XRP price analysis
By press time, XRP was trading at $2.03, having plunged about 1.8% in the past 24 hours, while on the weekly timeframe the token has dropped over 7%.
If the new rebound anticipation materializes, XRP will likely have a better chance of maintaining its price above the $2 support zone. However, if broader market sentiment remains bearish, then XRP faces a high risk of losing the $2 support.
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