#Crypto Market Rebounds# The failure of institutional adoption to raise the price of XRP – what’s next?

XRP dropped by 8.5% this week. The Relative Strength Index (RSI) has fallen to 32.32. The Directional Movement Index (DMI) shows a strong bearish trend with an increasing ADX and widening DI gap.
Multiple death crosses of the exponential moving averages and failed support tests indicate weakness. $2.07 and $2 are important targets for the decline.
Despite positive news such as a $300 million investment in artificial intelligence, technical indicators show that XRP is currently under severe selling pressure.
Despite the significant positive news, XRP is under severe downward pressure. The token has dropped by nearly 5% in the past twenty-four hours and 8.5% over the past week. Several crossovers and deaths of the exponential moving averages have also occurred in recent days, reflecting the ongoing weakness.
Despite announcements such as a $300 million investment from a Chinese artificial intelligence company and a $121 million treasury raised by Saudi-linked VivoPower, technical indicators suggest that sellers are currently in control.
XRP enters the oversold zone
The relative strength index for XRP (RSI) has dropped to its lowest level at 32.32, compared to 48.68 just one day ago, indicating a sharp deterioration in short-term momentum.
This sharp decline reflects the increasing selling pressure that has pushed XRP closer to the oversold threshold, but it has not fully broken through it.
Interestingly, the XRP Relative Strength Index has not dropped below 30 since April 7. This indicates that although the recent corrections have been sharp, they have not yet caused the deep oversold conditions seen in more severe market pullbacks.
The current reading near 30 indicates that XRP is approaching a potential exhaustion point in its downward trend. If buyers intervene, the price may stabilize or attempt to recover.
This negative momentum comes after a Chinese artificial intelligence company announced plans to invest up to $300 million in XRP, and VivoPower raised $121 million for the Saudi royal family-backed XRP fund.
The RSI indicator is a popular momentum indicator that ranges from 0 to 100, designed to measure the speed and change of price movements. Readings above 70 typically indicate overbought conditions and the potential for a price pullback, while readings below 30 indicate oversold conditions and the possibility of a price recovery.
With XRP remaining just above the overbought threshold, the market is at a turning point: further declines could push the RSI below 30, attracting attention as technical traders await a rebound.
At the same time, stability at current levels may prevent deeper losses.
The price of XRP has not fallen below 30 for about two months, so a drop below this level now may attract bargain hunters or could accelerate the downward momentum if support levels fail to hold.
XRP DMI, ADX show a strong bearish trend as it exceeds 34
The Directional Movement Index for XRP (DMI) shows a significant shift in trend strength and momentum. The ADX rose to 34.78 from 27 the previous day.
The ADX indicator, or Average Directional Index, measures the strength of a trend without indicating its direction - readings above 25 generally indicate a strong trend, while readings above 30 indicate a very strong trend.
The sharp increase in ADX confirms that the current trend is ascending. However, the direction of this trend is clarified by the movement of the directional indicators: +DI has dropped to 8.57, while -DI has risen to 32.
This increasing gap between the trend indicators highlights that a strong downward trend is in progress. The decline of +DI indicates that the bullish momentum is rapidly retreating, while the rise of -DI suggests that selling pressure is increasing.
With -DI now significantly higher than +DI and ADX confirming the strength of this movement, it seems that XRP is in a strong downward trend.
Unless there is a sudden shift in buying interest, the current structure indicates continued downward pressure in the short term, reinforcing what other indicators such as the RSI already suggest.
XRP is at risk of dropping below $2 in a downward trend.
The exponential moving averages of XRP (EMAs) have shown several death crosses in recent days, reflecting the ongoing downward pressure as the token struggles to regain momentum below the $2.50 level.
These downward crossovers - short-term moving averages falling below long-term moving averages - indicate weakness in the trend and coincide with XRP's recent failure to return to the bullish zone.
If the correction deepens, XRP could retest the $2.07 support, and failure to maintain this level could open the door to a drop below $2, a level not seen since April 8. This could confirm a broader shift in market sentiment and potentially accelerate downward momentum.
However, if buyers regain control and XRP manages to reverse the trend, the outlook may change. In this case, $2.26 appears as a key resistance level, where a successful breakout could indicate renewed strength and open new bullish targets such as $2.36, $2.47, or even $2.65.
These resistance levels will need to be breached with convincing volume to invalidate the current descending exponential moving average structure.
Until then, multiple death crosses serve as a warning that the downward pressure is dominant unless the bulls make a strong recovery.