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Analyst Sounds Alarm on XRP – Is a Collapse Below $2 Imminent?
Ripple’s [XRP] price has been plummeting in recent days, and the cryptocurrency has now dipped to the critical $2.10 support level, recording an 8.06% single-day drop – one of the steepest among high-cap assets. As XRP revisits this crucial support zone for the second time since the election rally, market analysts are sounding the alarm on a potential collapse below $2.
In a recent analysis, a market strategist warned that a breach of XRP’s $2 support could trigger its “end game,” signaling a deeper breakdown. In response, AMBCrypto dove deeper into the possible factors at play to determine if this dire prediction is imminent or not.
Retail-driven Fear of Missing Out (FOMO) has been absent since the election rally, a crucial liquidity driver that has historically fueled XRP’s price surges. Meanwhile, Binance outflows have drastically decreased from 12 billion XRP to a mere 115 million, indicating a significant loss in buying pressure. Furthermore, it appears that small retail investors are hesitant to purchase the dip, as previous dips below $2 only saw inflows of around 10 million XRP.
In addition, futures traders are also pulling back, with Open Interest (OI) dropping by a whopping 6.38% to $3.17 billion – a sharp decline from its peak during the mid-January rally. With dwindling liquidity and waning FOMO, the possibility of reclaiming $3 seems increasingly slim, further heightening fears that Ripple’s $2 support level remains unstable.
The market’s response to news surrounding XRP’s potential inclusion in the Strategic Reserve was telling – within a day, Ripple plunged 18.79%, suffering a far steeper decline than Bitcoin’s 8.10% drop. Despite being 2024’s top-performing high-cap asset by year-to-date growth, any repeat rally in 2025 remains uncertain.
The fate of XRP now rests with major holders, who have thus far successfully defended the $2 level. However, rising volatility and diminishing retail demand are eroding this critical support zone. Without institutional support or renewed FOMO-driven buying pressure, the $2 support level is increasingly under threat.
In conclusion, it appears that a collapse below $2 may not be entirely improbable after all.
Source: https://ambcrypto.com/analyst-sounds-alarm-on-xrp-is-a-collapse-below-2-imminent/
