XRP has dropped nearly 12% in the past 48 hours, falling below the critical $2.00 support level.

This decline comes just as excitement was building around Teucrium’s launch of a leveraged US XRP ETF, which many hoped would fuel a rally. Unfortunately, bearish sentiment has taken over, overshadowing the positive news.

Traders Shift to Bearish Outlook

In the past day, XRP’s funding rate turned negative. This signals that traders are now betting on further price drops. As short positions increase, it’s clear that market sentiment has taken a sharp turn.

The negative funding rate reflects rising skepticism. Even though the ETF news sparked initial hope, traders now seem focused on more downside potential.

Technical Indicators Signal Weakness

The broader technical picture doesn’t look good for XRP either. The Average Directional Index (ADX) currently sits at 22. Although not yet in strong-trend territory, it’s inching closer to the 25 threshold—a level that typically confirms a strengthening trend. If this happens, the current downtrend may continue to intensify.

For XRP to reverse this trend, it must reclaim key support levels, particularly the $2.02 mark. Failing to do so could trigger more selling as traders respond to both technical cues and market mood.

XRP Price Forecast: More Downside Ahead?

At the time of writing, XRP is trading around $1.88. The current bearish trend continues to push the price lower, and with a strong resistance line dating back to early March, it could soon dip to $1.70.

However, there’s still a chance for recovery. If XRP can bounce back above $2.02, it may shift momentum. A rally past $2.14 would likely invalidate the bearish setup, opening the door for a possible trend reversal.