XRP is currently facing a key resistance level at $2.50, highlighting the need to monitor potential price levels for a bullish trend. XRP has encountered significant obstacles in its quest for upward momentum, failing to break through the key resistance level of $2.50.

This setback occurred after a strong performance at the end of 2024, when XRP was attempting to solidify its bullish trend. The recent rejection raises significant questions about the asset's short-term trajectory and highlights several key price levels that investors should closely monitor.

As profit-taking begins, XRP's price retracts

After a strong start in 2025, XRP's price movement has experienced downward fluctuations over the past 24 hours. As the global cryptocurrency market begins to rebound, the market has also started to reshuffle, with currencies like XRP and Shiba Inu (SHIB) witnessing bearish tailwinds.

The chart shows how XRP's price increased by 25% during the period from December 30 to January 4. However, after five consecutive days of gains, early profit-taking signals have emerged, as XRP's price retreated from $2.50 to a low of $2.33 and has currently recovered to a price of $2.43.

Due to the overall sentiment in the cryptocurrency market remaining generally positive, the recent decline in XRP’s trading volume suggests that traders may be redirecting their gains to other assets.

Increasing selling pressure

On January 4, the failure to break through the $2.50 resistance level saw XRP's bullish momentum weaken over the past 24 hours. However, derivatives market data indicates that active holders have increased selling pressure since January 2.

It is worth noting that the Taker buy/sell ratio from CryptoQuant tracks and compares the number of buy orders executed at the current market price to sell orders. A Taker buy/sell ratio below 1 indicates bearish dominance, meaning the number of sellers exiting at the current price exceeds the number of buyers willing to purchase.

The above chart shows that the Taker buy/sell ratio for XRP dropped to 0.93 on Sunday, January 5, indicating that during the first three trading days, the volume of sell orders consistently exceeded demand. This clearly set the stage for the 7% price drop experienced over the past 24 hours.

If a shortage of market demand relative to supply persists, XRP's price may face additional downside risks in the coming week.

Key support levels that need attention currently

The support level at $2.20 is a key point that investors need to pay attention to. If XRP falls below this threshold, it may indicate increased bearish pressure, potentially leading the asset to retreat to the 50-day exponential moving average (EMA) at around $2.07. If selling pressure intensifies, XRP could even test the $1.57 mark, which aligns with the 100 EMA support level.

Therefore, maintaining this support is crucial for XRP's neutral to bullish outlook in the future.

However, successfully breaking through $2.48 could reignite bullish momentum, especially with increased trading volume.

In summary, if XRP can hold above $2.20 and retest the $2.48 level, it may aim for a rebound to the target of $2.75. Conversely, falling below $2.20 could lead to a deeper correction, making $1.57 a key support area to watch.