In recent days, #XRP has faced a decline in line with the broader cryptocurrency market. Despite this dip, XRP has successfully held its critical support levels, signaling a potential rebound.
The $2.20 mark has emerged as a pivotal level to watch for XRP. Noted crypto analyst Ali Martinez has pointed out that XRP's next big move could hinge on this key milestone.
Key Levels: $2.20 Support and $2.70 Resistance
Since December 17, Bitcoin's decline below key support levels has triggered significant price corrections across the crypto space. XRP followed suit, dropping from $2.708 on December 17 to $1.98 by December 20—a sharp 27% drop in just three days.
However, XRP managed to recover, stabilizing near $2. As of now, it hovers around $2.20, marking a 7% weekly decline.
What Lies Ahead for XRP?
Ali Martinez has outlined two potential scenarios for XRP based on its performance around the $2.20 mark:
1. Bullish Scenario: If XRP maintains support above $2.20, it could enter a consolidation phase before attempting another push toward the $2.70 resistance level. A breakout above $2.70 could generate strong upward momentum, potentially driving the price beyond $3—a level XRP hasn’t reached in years.
2. Bearish Scenario: If XRP fails to hold $2.20, the token could slip below $1.96, likely attracting new buyers to stabilize the price.
Whale Activity and On-Chain Insights
On-chain data from Santiment suggests that whales remain bullish on XRP, even during this downturn. Addresses holding between 1 million and 10 million XRP tokens have accumulated an additional 80 million XRP since December 17. This aggressive buying hints at confidence in XRP's long-term potential and could help cushion further declines below $2.
Elliott Wave Analysis Signals Optimism
Elliott wave analysis also supports the bullish outlook. The recent drop below $2 is likely the conclusion of a corrective second wave. If this pattern holds, the start of a bullish third wave could be imminent, driving prices higher.
Final Thoughts
As XRP navigates this critical $2.20 level, market participants are closely watching for signs of consolidation or a breakout. With whale accumulation and technical indicators aligning for a potential recovery, XRP could soon challenge new highs.
