The XRP price has spent the last few years days in a vulnerable position after a drop from $2.20 and a retest of $2, which has now become the most watched level on the price chart. The weekly candle has managed to close something green for the first time in more than a month, but the recovery has not eliminated the weakness created by the recent sell-off.
Guy on the Earth’s latest technical analysis focuses on this exact moment, noting that the entire structure of XRP now hinges on whether this $2 zone can continue to function as the linchpin holding back further downward developments.
Holding $2 as key support for the bull
Guy on Earth describes the $2 price level as the boundary that separates resilience from a potentially long period of stagnation. His analysis shows that XRP is holding this level despite several weeks of bearish candles, a sign that sellers have failed to gain full control even after the broader market pullback.
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The weekly chart he shared shows a cluster of previous support zones roughly aligned between $2 and $1.95, making this area the base of the current trend. According to the analyst, the loss of the $2 price level could result in XRP floating around for months or even years with little upside, aside from isolated opportunities when temporary lows occur. For now, the fact that XRP finished in the green last week, even slightly, keeps its structure intact.
XRP’s reaction around $2 cannot be understood without looking at Bitcoin. According to him, the best-case scenario for XRP is Bitcoin rising above $100,000 again, and a subsequent decline in BTC dominance. The falling RSI on the chart on the weekly XRP timeframe also indicates a change in momentum, but the path will ultimately follow whatever direction Bitcoin chooses next.
XRP price chart. Source: @guyontheearth On X
Two divergent paths from here
Guy on the Earth outlines two possible outcomes as the market enters a critical phase. The first is a recovery from current levels that will allow altcoins to outperform again, opening the door for XRP to re-enter the mid-range around $2.60 before attempting to reach the previous highs.
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The second is a deeper market decline that XRP is dragging below the $2 price level. This move would turn key support into resistance and trigger an extended period of bearish price action. Nothing inspiring will happen underneath, other than well-timed purchases when the lows seem to have been reached.
Both scenarios are realistic, and $2 is the dividing point that will determine which scenario will unfold. Analyst’s preference leans towards higher move, but he warns traders should be aware of the risks if Bitcoin doesn’t stabilize soon.
At the time of writing, XRP is trading at $2.02 after falling 1.2% in the last 24 hours and is at risk of losing this $2 support level.
Featured image created with Dall.E, chart from Tradingview.com