XRP faces pressure as investor demand weakens

XRP (CRYPTO:XRP) has seen declining investor interest as the broader crypto bull market stalls, raising concerns about its ability to maintain the critical $2 support level.

The altcoin has struggled to sustain momentum following its impressive 600% rally between October 2024 and January 2025.

During its peak rally, XRP saw a 490% surge in daily active addresses and a significant increase in realised capitalisation, driven by retail investors.

However, recent data from Glassnode indicates that speculative interest has waned, with realised profit-to-loss ratios consistently declining since early 2025.

Analysts suggest that retail confidence may be slipping, compounded by whale outflows totaling over $1 billion in the past two weeks.

On the technical front, XRP has repeatedly tested the $2 support level, with each retest increasing the likelihood of a breakdown.

A bullish divergence observed on lower timeframes offers some hope for a relief rally toward the $2.08–$2.13 range.

However, broader market conditions remain bearish, with higher timeframe charts pointing to an inverse head-and-shoulders pattern that could push XRP toward $1.07 if selling pressure persists.

The altcoin’s long-term outlook hinges on its ability to hold above the 200-day moving average around $1.70–$1.80, a level not tested since November 2024.

Analysts note that maintaining this support could provide a foundation for recovery, but failure to do so may trigger further declines.

At the time of reporting, the XRP (XRP) price was $2.05.