Will XRP Price Hold $2.0 Support Or Face A 40% Drop To $1.20

XRP price is trading near the $2.0 support level, and analysts are observing whether it can sustain this level or face potential price devaluation.

According to some analysts, failure to sustain this position may result in substantial price reductions.

Price Bounced from $1.9

Notably, XRP price demonstrated a brief recovery above $2.0 in the past 24 hours after it regained position above $1.9.

However, trading volumes have shown a substantial decrease of 49% to $4.21 billion during the market recovery period.

The lower trading volume is a key indicator of weak market sentiment showing little power to push prices toward higher levels.

Additionally, the reduced trading volume indicates that institutional investors and retail traders are not actively participating, which can hinder the sustainability of price uptrends.

XRP price successfully reached $2.0 before it pended at that level but the diminished trading volume stresses the weak nature of ongoing trends.

Testing the Crucial $2.0 Support

XRP price has sustained a position above $2.0. Its immediate market action depends on this key support level.

According to analyst Ali Martinez, XRP may decline if it loses the current breakout zone, as its price could fall toward $1.80-$1.90.

Testing the breakout zone for a second time is a critical signal for determining whether the price will keep rising or decline.

Additionally, the analyst has predicted that XRP price could decrease by 40% to reach $1.20 if it does not sustain its current price level of $2.

This level represents an important line of defense for the token against further losses.

More so, another analyst noted XRP price was ready to breakout of a symmetrical triangle pattern.

The analyst shared a previous pump that originated at $1.20 during the 2017 cycle and reached 2,600% growth before market correction.

In his analysis, the crypto analyst predicted that XRP may reach $30 after completing triangle edge retrace.

The historical XRP performance data alongside the chart analysis has indicated that price could experience substantial growth if the support levels sustain.

XRP Price Prediction and Technical Analysis

On the technical indicators, the 1-day Moving Average Convergence Divergence (MACD) indicator has revealed a minor bearish bias for XRP price movement.

The MACD line is below the signal line. Therefore, the negative momentum is controlling the market trend as the bearish direction gains strength.

Nevertheless, the MACD histogram has indicated that the bearish momentum is weakening.

The red bars on the histogram have reduced in size, suggesting the market might enter consolidation or reverse direction when bearish power dies down.

Moreover, the Bull-Bear Power (BBP) indicator for XRP price has also presented a bearish value, showing that sellers currently have power over the bulls.

A negative BBP reading indicate bears maintain the upper hand as the market is showing more sellers than buyers.

The current lack of bullish power in the market is preventing a price surge unless bearish pressure weakens. This action would then trigger buying activity.

Meanwhile, according to recent analysis, there is growing network participation for XRP with the number of XRP addresses surpassing 6.26 million.

The surge of holders has indicated more and more holders are valuing this opportunity of current lower price as an indicator of strengthening investor confidence.

Additionally, market interest has gone up with the launch of 2x leveraged XRP ETF.