XRP Faces Critical Test as Price Nears $2 Threshold

XRP, one of the most prominent cryptocurrencies, appears to be at a tipping point, with signs indicating a potential drop below the critical $2 mark.

Despite currently trading at $2.084, the asset has been on a steady decline for the past month, consistently posting lower highs on its daily chart. This pattern hints at the possibility that the token may soon fall below $2, a level it has been hovering around for some time.

A key factor in this potential downturn is the 200-day moving average, currently positioned at $1.84. Acting as a gravitational force, this price curve is pulling XRP closer, suggesting that the market may soon test buyers’ resilience at this level.

Traders often view the 200-day moving average as a crucial point for setting stops and gauging buying pressure, making it a significant focal point for XRP’s next move.

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This situation is not entirely unprecedented. Earlier in February, XRP experienced a sharp one-day drop of over 30%, plummeting from $2.79 to $1.768. Although that decline was more severe, it sets a precedent for potential volatility around the 200-day moving average.

However, there is still a glimmer of hope for XRP enthusiasts. Since December 2024, the cryptocurrency has tested the $2 level seven times and managed to stay above it each time, indicating consistent buyer support. Whether this buying interest will be sufficient to counteract any new selling pressure remains uncertain, but previous recoveries after significant drops suggest that a bounce-back is not entirely out of the question.

Alexander Stefanov