Following a market downturn that pushed Bitcoin toward $100,000, XRP also experienced a significant drop, approaching a key support level near $2.1. While the price remains just above this threshold, it is considered crucial for its short-term trend.
Crypto analyst The Alchemist Trader highlights the importance of this level, noting it coincides with the 200-day moving average and a prior value area low. It now acts as a vital daily support and resistance pivot point, which both bulls and bears contest.
Recent declines have pushed XRP roughly 4.5% lower over the past week, repeatedly testing this support near $2.09. The analyst warns that multiple tests weaken the level, raising the risk of a breakdown. A breach could trigger a liquidity sweep and further price declines.
However, there remains a bullish scenario if buyers defend the support successfully. A rebound accompanied by increased volume and a move toward local highs around $2.4 could signal a continuation of the upward trend.
“For bulls, a clean defense of this level with volume and a move back above recent local highs would indicate a potential rotation toward the next resistance,” the analyst said. “For bears, a breakdown without recovery increases the likelihood of further downside.”
Investors are advised to exercise caution and wait for clear confirmation—either a decisive break below support or a strong rally upward—before committing to positions.