XRP Struggle at $2 Support Level: Probabilities for Bearish and Bullish Scenarios

• The battle for control of the $2 support zone continues. XRP is facing a challenging market environment with the recent decline of Bitcoin.

• Ripple (XRP) buyers remain determined to defend the $2 level, but current market dynamics require a cautious approach for investors.

• “Accumulated liquidity below this zone is worrying. According to Coinglass, significant price targets are $1.98 and $2.23.”

XRP is in a critical phase with bulls defending the $2 level; Could this indicate a change in market dynamics?

XRP Price Prediction: Bulls and Bears Fight for Control Above $2

XRP price movements are increasingly bearish as there is a significant fight between buyers and sellers at the critical $2 support level. As Bitcoin’s retreat affects the crypto markets, investors are focusing on how XRP will respond to this situation. For now, the defense of the $2 support level is quite strong, with participants showing their intention to hold this psychological level; However, low sales volume raises concerns about the sustainability of this upward momentum.

Analysis of recent price charts shows that a break below this critical support level could open the door to a further decline towards $1.4 or even $1. This scenario could present potential buying opportunities for swing traders looking to take advantage of price fluctuations.

Source: XRP/USDT on TradingView

Market indicators reveal a continuously declining outlook

COINOTAG’s latest analysis shows that the XRP market is strongly bearish. The current price structure reflects that there has been a significant pullback, indicating downward momentum; This is visible when the Awesome Oscillator is placed below the zero line. While there is potential for a pullback towards the 61.8% and 78.6% Fibonacci levels, strong buying interest in the $1.96-$2.2 demand zone is providing resistance to the current decline.

Interestingly, the Accumulation/Distribution (A/D) indicator remains in an upward trend, indicating a continued increase in buying pressure. This could neutralize some of the bearish sentiment, but low selling volume combined with the decline in volume over the past three weeks signals caution among market participants.

Accumulation of liquidity and target price in the short term

Source: Coinglass

Despite active efforts by XRP bulls to maintain the $2 support level, the data shows that little liquidity has accumulated below this zone. The liquidation heat map points to the $1.98 and $2.23 regions as critical price targets to watch closely. These areas represent important pockets of liquidity where volatility could rise in the coming trading sessions.

Traders should be prepared for the possibility of a return to these thresholds as they may represent temporary reversal opportunities. Overall market sentiment is still significantly influenced by Bitcoin price movements, so it is crucial for XRP investors to keep a close eye on Bitcoin trends when guiding their trading strategies.

Conclusion

As the price of XRP struggles with the critical $2 support amid market volatility, traders and investors need to carefully consider their options. A potential drop below this level could open the door to deeper pullbacks, while firm defenses could provide temporary respite. Monitoring Bitcoin’s main liquidity and impact zones will be key to making future investment decisions in the XRP market.