XRP's market outlook has turned cautious as two significant developments emerge: a bearish technical pattern on its weekly chart and a dramatic, albeit temporary, drop in network activity. Popular analyst Ali Martinez highlighted the formation of a gravestone Doji candlestick on XRP's weekly timeframe. This pattern, characterized by a long upper wick reaching towards the $2.41 level and a close near its open at approximately $2.06, signals a strong rejection by sellers after a bullish push, indicating significant overhead resistance and a loss of bullish momentum.
The key level to watch is the $2.00 support. A weekly close below this threshold could see XRP's price decline toward the next support at $1.88, cementing a bearish short-to-mid-term outlook. Conversely, holding above $2.00 leaves the door open for a potential recovery, though the price would need to break through the $2.10 – $2.30 resistance zone to establish a sustained uptrend. At the time of reporting, XRP was trading at $2.08.
Separately, the XRP Ledger experienced a 99% decline in transactional activity over a 48-hour period, primarily occurring over a weekend. Analysts contextualize this plunge as a typical liquidity dry-up when major institutional players and market-making flows are inactive, rather than a sign of network abandonment or structural damage. The report notes that such activity usually rebounds quickly as the trading week begins.
The combination of these factors—technical resistance and thin, erratic weekend trading volume—creates an environment prone to increased price volatility, fake breakouts, and sudden pullbacks. The overall narrative suggests a period of hesitation for XRP, with its near-term direction hinging on its ability to hold critical support levels as normal network activity resumes.
