#Crypto Market Rebounds#  Institutional Adoption Fails to Boost XRP Price – What’s Next?

XRP is down 8.5% this week. RSI has dropped to 32.32. DMI is showing a strong downtrend with rising ADX and widening DI gap.

Multiple EMA death crosses and failed support tests point to weakness. $2.07 and $2 are important downside targets.

Despite positive news like the $300 million AI investment, technical indicators show that XRP is currently under intense selling pressure.

Despite the big bullish news, XRP is under intense downward pressure. The token is down almost 5% in the last 24 hours and 8.5% in the last week. Multiple EMA death crosses have also occurred in recent days, reflecting ongoing weakness.

Despite announcements such as a $300 million investment from a Chinese AI firm and a $121 million treasury raise led by Saudi-linked VivoPower, technical indicators suggest that sellers are currently in control.

XRP Entering Oversold Territory

XRP’s Relative Strength Index (RSI) has fallen to as low as 32.32, down from 48.68 just one day ago, indicating a sharp deterioration in short-term momentum.

This sharp decline reflects the intensified selling pressure that has pushed XRP closer to the oversold threshold, but has not fully broken through it.

Interestingly, XRP’s RSI has not fallen below 30 since April 7. This suggests that while recent corrections have been sharp, they have not yet triggered the deep oversold conditions seen in more serious market pullbacks.

The current reading near 30 suggests that XRP is approaching a potential exhaustion point in its downtrend. If buyers step in, the price could stabilize or attempt a recovery.

This bad momentum comes after a Chinese AI company announced plans to invest up to $300 million in XRP, and VivoPower raised $121 million for its Saudi Royal-backed XRP Treasury.

The RSI is a common momentum indicator that ranges from 0 to 100, designed to measure the speed and magnitude 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 a possible price recovery.

With XRP hovering just above the oversold threshold, the market is at a turning point: further declines could push the RSI below 30, drawing attention as technical traders await a bounce.

At the same time, stability at current levels could prevent deeper losses.

XRP hasn’t fallen below 30 in almost two months, so a drop below that level now would either attract bargain hunters or accelerate bearish momentum if support levels fail to hold.

XRP DMI, ADX Show Strong Bearish Trend as It Breaks Above 34

XRP’s Directional Movement Index (DMI) is showing a significant shift in trend strength and momentum. The ADX rose to 34.78 from 27 the day before.

The ADX, 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 the ADX confirms that the current trend is intensifying. However, the direction of this trend is made clear by the movement of directional indicators: +DI fell to 8.57, while -DI rose to 32.

This widening gap between the directional indicators highlights that a strong downtrend is in play. A falling +DI suggests that bullish momentum is rapidly weakening, while a rising -DI suggests that selling pressure is accelerating.

With -DI now significantly higher than +DI and ADX confirming the strength of this move, XRP appears to be in a solid downtrend.

Unless there is a sudden turn in buying interest, the current structure points to continued bearish pressure in the near term, reinforcing what other indicators like the RSI are already signaling.

XRP At Risk of Diving Below $2 in a Downtrend

XRP’s exponential moving averages (EMAs) have shown multiple death crosses in recent days, reflecting ongoing downward pressure as the token struggles to regain momentum below the $2.50 level.

These bearish crosses—short-term EMAs dropping below long-term EMAs—indicate a weakening trend and are consistent with XRP’s recent failure to return to bullish territory.

If the correction deepens, XRP could retest the $2.07 support, and failure to hold that 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 bearish momentum.

However, if buyers regain control and XRP manages to reverse the trend, the outlook could change. In this case, $2.26 stands out as a key resistance level, where a successful breakout could signal renewed strength and open up next upside targets such as $2.36, $2.47, or even $2.65.

These resistance levels will need to be broken on convincing volume to invalidate the current downtrending EMA structure.

Until then, multiple death crosses serve as a warning that downward pressure is dominant unless the bulls stage a strong recovery.