XRP is once again under heavy pressure after breaching critical support levels, with analysts warning that the token could be preparing for a deeper slide toward $2. The move comes after a week of heavy selling that erased billions from the asset’s market value and left traders bracing for further downside.
Notably, the token slipped beneath the psychologically important $2.40 threshold on October 16, extending a decline that has already seen XRP tumble more than 14% from last week’s peak at $2.79.
The digital aseet’s market capitalization has shrunk from $167 billion to $143 billion in just seven days, with nearly $8 billion wiped out in the past 24 hours alone.
Respected on-chain analyst Ali Martinez warned that XRP’s chart structure suggests more pain ahead. “XRP looks like it wants to revisit $2,” he said, highlighting $2.80 as stiff resistance and $2.10 as the immediate floor.
The caution comes only days after XRP briefly touched the $2 level in a flash crash, raising concerns the market could be on the verge of retesting those lows in a more sustained move.
Market signals appear to support the bearish view. XRP has not only broken below the 38.2% Fibonacci retracement level at $2.52 but also lost its 30-day moving average at $2.83, a dual breakdown that underscores weakening momentum.
Indicators such as the RSI, now hovering near 34, show that sellers remain in control while still leaving room for further downside. At the same time, widening Bollinger Bands and a negative MACD divergence point to growing volatility and downside pressure.
Compared to Bitcoin and Ethereum, which are also under pressure amid a broader market sell-off, XRP’s losses have been sharper, amplifying concerns that it may underperform its peers in the near term.
Unless the token can reclaim the $2.50 area with conviction, analysts warn that the path of least resistance remains lower. In the meantime, the $2 mark, a level that seemed like a flash-crash anomaly only a week ago, is once again back on the radar.
