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$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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