Bear Trap or Further Decline? XRP Brushes $1.99 Amid Uncertain Market Direction

XRP endured another volatile trading session on Monday, briefly dropping below the key $2.00 level before reclaiming some ground. The market now sits at a pivotal technical juncture: bulls must force a breakout above $2.05–$2.07 to shift momentum upward, while any renewed slip under $2.00 could accelerate the next leg lower.

The dip beneath $2.00 came amid broader risk-off sentiment across the crypto market. Trading volumes surged to 149.1 million — more than twice the daily average — signaling significant institutional participation on the sell side. Although spot XRP ETFs continue to attract steady inflows, near-term price behavior is still being shaped primarily by technical positioning rather than fundamental demand.

Recent market data highlights a cautious environment:

Whale activity has been uneven, with slight net selling over the last two days
Derivatives open interest has fallen, reflecting a reduction in leveraged exposure
ETF inflows remain positive but have not yet translated to stronger spot support

From a structural standpoint, the drop below $2.00 confirmed a weakening trend as XRP printed consecutive lower highs throughout the session. The surge in sell volume during the dip underscored that the move was driven by active selling pressure rather than thin liquidity conditions. Attempts to rebound were repeatedly rejected at the $2.05–$2.07 resistance region, keeping XRP pinned near $2.02 as price action tightened into a narrowing formation.

Despite this bearish lean, buyers continue to defend the zone just above $2.00, signaling the presence of a strong demand pocket. Momentum indicators currently lean neutral-to-bearish, showing diminishing rally strength as price approaches overhead resistance. Yet the inability of sellers to sustain levels below $1.99 suggests weakening downside conviction.

This places XRP in a binary setup: recapturing $2.05 would likely ignite a bullish continuation, while losing the $2.00 support level exposes immediate targets at $1.95 and $1.90.

Intraday movement remained compact, with XRP trading within an $0.08 band after its early slide from $2.07 to $2.02. The heaviest selling occurred around 15:00 UTC when a volume spike of 103% above average pushed the token from $2.04 down to $1.99. Buyers quickly stepped in, lifting the price back toward $2.023. Hourly charts now show tightening compression around $2.02 with declining volatility, suggesting XRP is priming for a larger directional move as it continues to hold above crucial support.