The post After Failing to Hold $3, Can XRP Price Defend the Crucial $2 Support Zone? appeared first on Coinpedia Fintech News
The crypto markets’ correction deepens as the Bitcoin price breaks down the crucial support at $110,000. With this, the other altcoins, including Ethereum & XRP, have slashed below their respective thresholds at $4000 and $2.5. Despite market volatility, XRP price has shown some resilience even after losing the $3 support. However, the current price action suggests the correction may continue further.
XRP has come under renewed selling pressure, slipping nearly $3 over the past week as traders eye the crucial $2 support zone. The token’s recent weakness follows a broader crypto market downturn, even as Ripple’s internal and institutional activity has intensified. With both bullish and bearish signals emerging, investors are closely watching whether XRP can defend this vital level or risk a deeper correction in the days ahead
XRP Accumulation & Transfers Raise Market Eyebrows
Ripple Labs is reportedly preparing to raise $1 billion through a special-purpose vehicle to accumulate more XRP tokens—a move seen as a sign of long-term confidence. Such a large-scale accumulation effort could reduce circulating supply and stabilise the token during volatile phases. At the same time, data from institutional reports shows public companies now hold over $11.5 billion worth of XRP, led by Japanese fintech giant SBI Holdings. Analysts believe these developments could act as a supply shock if sustained, strengthening the bullish case for XRP once technical momentum turns.
Meanwhile, Ripple transferred 70 million XRP in a single on-chain transaction. While large transfers often trigger speculation about possible sell-offs, on-chain trackers suggest this movement might be linked to treasury management or internal reallocation, not necessarily exchange inflows.
However, traders remain cautious—historically, such transfers have coincided with volatility spikes, especially when the token tests key support zones like $2.10 and $2.00.
XRP Price Analysis: Bears Retain Short-Term Control
On the technical front, XRP trades around $2.33, down roughly 3.1% on the day, and remains below its 20-day and 50-day moving averages—both signalling ongoing downside pressure. The RSI hovers near 45, hinting at neutral-to-bearish momentum, while Chaikin Money Flow (CMF) readings suggest limited inflows.
- Immediate support: $2.20 → $2.00 → $1.85
- Resistance levels: $2.55 → $2.80 → $3.10
A daily close below $2 could trigger a sharp correction toward the $1.60–$1.70 range, while reclaiming $2.80 would confirm a bullish reversal.
XRP 7–14 Day Outlook: Can Bulls Defend $2?
- Bullish case: Ripple’s $1B accumulation drive and institutional holdings may tighten supply, keeping prices afloat above $2.20. A breakout above $2.80 could push XRP back toward the $3.10 zone.
- Bearish case: A failure to defend $2 may open doors to deeper losses, with momentum-driven traders eyeing $1.60 as the next major floor.
- Neutral case: Consolidation between $2.10 and $2.70 as traders await clarity from ETF updates or Ripple’s fund deployment strategy.
