XRP Hovers Near Key Support at $2
XRP is hovering near the critical support level of $2. Analysts believe that a rebound could push it towards $2.80, but failure to do so may open up a short-term setup and a deeper correction. Additionally, recent large-scale whale sell-offs have heightened the risks of further corrections.
Can the Bulls Regain Control?
Ripple’s XRP witnessed a significant event on March 19 when CEO Brad Garlinghouse announced the end of his entity’s legal battle with the U.S. Securities and Exchange Commission (SEC). The price surged to $2.60 but equally abruptly, it seemed to hit a “sell the news” moment in the following days.
In recent days, the pullback has intensified, with XRP nearing the psychological level of $2 just hours ago. It is currently trading at approximately $2.09 (according to CoinMarketCap data), reflecting a 20% decline since the observed local peak at the time of Garlinghouse’s disclosure.
Despite the negative performance, XRP remains a favorite topic among analysts, many of whom have recently weighed in on the matter. X user cryptowzrd notably stated that the Ripple cross-border token is trading very close to the $2 support area and predicted that a potential reversal from the current position could push the valuation towards the resistance level of $2.80.
“Holding below $2.10 for a while might lead to a brief dip. However, moving towards $2.33 and then executing a healthy reversal would provide better short-term opportunities. Sustaining above $2.33 for an extended period could lead to a longer-term trend. We now need to wait for the next healthy, mature trade setup to interact with the trade,” they specified.
Analyst using the moniker The Great Matsby also shared their insights. They assumed that XRP may have bottomed out in early February, tanking below $1.80.
Peter Brandt’s Opinion
Veteran trader Peter Brandt also weighed in. He recently suggested that the XRP price has formed a typical head and shoulders (H&S) pattern. He predicts that if the valuation surges above $3, and if the resistance level does not hold at $1.90, it could elevate its outlook to $1.07.
Meanwhile, whales have dumped 1.12 billion XRP within a 48-hour period, potentially laying the groundwork for a deeper correction. After all, large sell-offs can trigger panic across the entire space, causing smaller players to exit the ecosystem as well.
This effort has also increased the circulating supply of XRP, coupled with a lack of climbing demand, leading to depressed prices. The stash of 1.12 billion tokens amounts to nearly $2.5 billion (at current prices).
