XRP experienced an 8% drop in the last 24 hours, signaling potential challenges in maintaining its upward momentum. The asset’s attempt to break past the $2.60 resistance level failed, which has raised concerns about the strength of the bullish trend. This price point has acted as a crucial benchmark for many investors, with expectations that a successful breakout could trigger further gains. However, XRP’s rejection at this level suggests that market sentiment may be shifting.

_{Source: CoinMarketCap}

Investor Sentiment Shifts Amid Price Rejection

The inability to surpass $2.60 has disappointed many investors who had anticipated a continuation of XRP’s recent rally. This setback highlights potential exhaustion in the market, especially after the asset’s impressive gains in recent weeks. 

Investors now fear that the bullish momentum may be waning, which could affect the overall outlook for XRP. Despite the negative sentiment, the current pullback might benefit XRP in the long run. Sudden price surges often result in overbought conditions, making a correction necessary to maintain market balance. 

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By pulling back, XRP could regain strength for another upward move. However, if selling pressure persists or investors increase leverage, the situation could worsen, leading to more significant losses.

Key Support Levels to Watch: $2.20 and $2.00

Chart analysis points to $2.20 and $2.00 as critical support levels. A breach below these levels could signal a deeper correction, making them essential zones for preserving bullish momentum. If XRP holds these levels, buyers may reenter the market, pushing the price higher. Regaining $2.60 would reignite bullish sentiment and open the path toward the much-anticipated $3 mark.

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While the current retracement has raised doubts, it doesn’t necessarily signal the end of XRP’s upward potential. If bulls maintain support at key levels and trading volume increases, XRP could resume its climb. 

Investors should stay cautious, monitor support zones, and watch for signs of renewed buying interest. The coming days may reveal if this is a temporary setback or a larger shift in market sentiment.