Can XRP Overcome Resistance, or Is a Drop to $2 Next?

XRP, one of the top altcoins by market cap, held steady around $2.35 on March 27, despite mounting selling pressure.

Traders have poured nearly $400 million into short positions over the past month, creating a barrier that has kept the price from breaking higher. With April approaching, the question is whether XRP can overcome this resistance.

Recent gains were fueled by the SEC dropping its case against Ripple, but expectations of a quick sell-off proved wrong. Instead, market confidence remained intact, supported in part by geopolitical developments, including Trump’s proposed auto tariffs. Brief dips to $2.30 were quickly bought up, reinforcing support at current levels.

However, data from Coinglass reveals a heavy short presence at $2.60, where bears have placed $244 million in bets against a breakout. Each attempt to push higher has triggered renewed selling, making this a crucial price zone to watch. For XRP to rally past $3, buying pressure needs to overpower these bearish positions.

Technical indicators suggest a battle ahead. The 50-day moving average at $2.52 is a key resistance point, while momentum signals, including a weakening MACD and a bearish Parabolic SAR, hint at fading strength.

If XRP can hold above $2.40, it might gain enough momentum to challenge $2.60. A failure to do so could see it drop toward $2.00, with a further decline to $1.76 possible if selling pressure intensifies.