XRP Price Analysis

XRP may decline steeply to levels last seen in November 2024 if it fails to sustain current levels and drops below the psychological $2 price mark.

The cryptocurrency market is facing uncertainty as the FOMC meeting approaches, with XRP following the market’s trend. Notably, the digital asset surged nearly 2% on Monday but lost all gains the next day.

Amid this volatility, analyst Ali Martinez has indicated essential support levels for XRP to maintain bullish momentum. He warned that a drop below $2 could lead to a significant decline of 29% to $1.60.

No Significant Support Below $2

Martinez noted in a tweet that XRP might be gearing up for a substantial price shift, likely downward if it fails to maintain the $2 support. He pointed out that there is little support beneath the psychological $2 mark.

An accompanying chart revealed a gap below $2, with the next key demand wall positioned at $1.63. Martinez utilized the UTXO Realized Price Distribution (URPD) ATH-Partitioned indicator to identify possible support areas, indicating a significant push around $2.38 where 2.39 billion XRP were moved. Below $2, support weakens considerably, dropping significantly until $1.63, where only 1.13 billion XRP were transacted.

Martinez also expressed concerns that dropping below $2 could lead to capitulation towards $1.27, citing a possible head and shoulders price pattern.

Analyst Says $1.60 Too Steep

Conversely, analyst CryptoLax argued that a fall to $1.60 is “quite steep” and suggested resistance as XRP approaches a supply zone on the 4-hour chart. He posited that if XRP faces rejection in that zone, it could rebound to $2 at worst.

His analysis anticipates that the asset will uphold a support trendline, which has previously buffered XRP against recent declines. As of now, XRP is trading at $2.2992, experiencing a slight increase of less than 1% in the last 24 hours.