Ripple’s XRP is trading dangerously close to a key support level, and the crypto market is watching closely. After dropping nearly 8% over the past month, XRP has found itself at a make-or-break zone around $2.09 — a level that could either spark a bounce or trigger a deeper drop.
Key Support Holding… For Now
The $2.09 area is more than just a round number. It’s a significant confluence of support, lining up with the 200-day moving average, the daily support/resistance zone, and the value area low. This clustering makes it a critical price point that could define XRP’s next major move.
Two Possible Scenarios: Bounce or Breakdown
Right now, the market is in wait-and-see mode. Here’s what could happen next:
- Bullish Case: If XRP holds this level and sees increased buying pressure, it could bounce back and head toward the next resistance levels. A move above recent intraday highs would be the first sign of strength.
- Bearish Case: However, if the $2.09 support breaks and the price fails to reclaim it quickly, we could see a sharper decline. Bears may target the liquidity sitting below this level, leading to a potential flush lower.
Repeated Tests = Warning Sign
While this support has held so far, XRP has been hovering near this zone for a while. The longer price stays at support, the more likely it is to break. Market psychology tells us that repeated tests can weaken a support zone, giving sellers an opportunity to push lower.
Market Still Uncertain
This price action comes at a time when broader market sentiment is cautious. Despite the recent approval of Canadian spot XRP ETFs, the token hasn’t shown a strong reaction. This lack of enthusiasm signals ongoing uncertainty among investors.
What to Watch Next
The next few days — or even hours — could be pivotal for XRP. If bulls step in and reclaim short-term highs, we might see a short-term rally. If not, a breakdown from this zone could invite more downside.
Bottom line: XRP is sitting on the edge. Traders should watch for a clear breakout or breakdown before making major moves.
