$2 remains the psychological make-or-break level — a defense here could attract fresh buying interest.
The crypto markets’ correction deepens as the Bitcoin price breaks down the crucial support at $110,000. With this, the other altcoins, including Ethereum & XRP, have slashed below their respective thresholds at $4000 and $2.5. Despite market volatility, XRP price has shown some resilience even after losing the $3 support. However, the current price action suggests the correction may continue further.
XRP has come under renewed selling pressure, slipping nearly $3 over the past week as traders eye the crucial $2 support zone. The token’s recent weakness follows a broader crypto market downturn, even as Ripple’s internal and institutional activity has intensified. With both bullish and bearish signals emerging, investors are closely watching whether XRP can defend this vital level or risk a deeper correction in the days ahead
Ripple Labs is reportedly preparing to raise $1 billion through a special-purpose vehicle to accumulate more XRP tokens — a move seen as a sign of long-term confidence. Such a large-scale accumulation effort could reduce circulating supply and stabilise the token during volatile phases. At the same time, data from institutional reports shows public companies now hold over $11.5 billion worth of XRP, led by Japanese fintech giant SBI Holdings. Analysts believe these developments could act as a supply shock if sustained, strengthening the bullish case for XRP once technical momentum turns.
Meanwhile, Ripple transferred 70 million XRP in a single on-chain transaction. While large transfers often trigger speculation about possible sell-offs, on-chain trackers suggest this movement might be linked to treasury management or internal reallocation, not necessarily exchange inflows.
However, traders remain cautious — historically, such transfers have coincided with volatility spikes, especially when the token tests key support zones like $2.10 and $2.00.
On the technical front, XRP trades around $2.33, down roughly 3.1% on the day, and remains below its 20-day and 50-day moving averages — both signalling ongoing downside pressure. The RSI hovers near 45, hinting at neutral-to-bearish momentum, while Chaikin Money Flow (CMF) readings suggest limited inflows.
A daily close below $2 could trigger a sharp correction toward the $1.60-$1.70 range, while reclaiming $2.80 would confirm a bullish reversal.
Read more on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
