XRP Faces Critical Test at $2—Will Bulls Hold or Is $1.60 Next? Analyst

Andrew Chen
XRP

The cryptocurrency market remains in a state of flux as the Federal Open Market Committee (FOMC) meeting approaches, with XRP following the broader trend of uncertainty. On Monday, the digital asset surged nearly 2%, only to erase its gains the next day, leaving investors questioning its next move.

Key Support Levels Identified

Prominent market analyst Ali Martinez has provided critical insights into XRP’s price trajectory, identifying a crucial support level that could determine whether the asset maintains its bullish momentum or faces a significant decline. Martinez highlighted that if XRP fails to hold above the $2 psychological support, it could be at risk of a steep 29% drop to $1.60.

Using the UTXO Realized Price Distribution (URPD) ATH-Partitioned indicator, Martinez noted that there is no significant support below the $2 mark. The URPD metric tracks the number of XRP tokens transacted at various price points, offering insights into potential demand zones. According to the data, market participants moved approximately 2.39 billion XRP at $2.38, reinforcing it as a substantial support area. However, below $2, the volume of XRP moved drops significantly, with the next major demand wall appearing around $1.63, where 1.13 billion XRP were transacted.

Bearish Scenario: Capitulation to $1.27?

Martinez’s analysis aligns with his earlier projections, where he warned that a break below $2 could accelerate a downturn to $1.27 due to a developing head-and-shoulders pattern. This bearish formation suggests increased selling pressure, making it crucial for XRP bulls to defend key support levels.

Opposing View: XRP to Hold Above $2?

While Martinez predicts a potential free fall, analyst CryptoLax remains more optimistic. He argues that a drop to $1.60 is “quite steep” and expects XRP to face resistance as it nears a supply zone on the 4-hour timeframe. CryptoLax’s analysis suggests that if the token is rejected from this zone, it could stabilize around $2, mitigating the risk of a deeper decline.

At press time, XRP is trading at $2.2992, up slightly by less than 1% in the past 24 hours. As the FOMC meeting looms, traders remain on high alert, with XRP’s next move hinging on whether it can maintain key support levels.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Analyst Declares ‘XRP Bottom Is In’—Is a 500% Rally to $14 Next?

About The Author

Andrew Chen

I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.

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