XRP is approaching a critical juncture as it hovers near the $2 support level while testing its long-term 20-month EMA, a key gauge of market trend health.
Traders and institutional investors are closely observing these levels, as historical behavior around this EMA has often preceded notable price moves. Despite a 3.35% pullback over the past 24 hours, XRP’s technical structure and on-chain metrics suggest accumulation pressures are in play. If support holds, XRP could stabilize, but a breach below the $2 level might prompt further short-term weakness.
XRP Faces Key Technical Levels
Technical analyst ChartNerd (@ChartNerdTA), known for long-term XRP/USD pattern analysis, notes that XRP is sitting on a flipped support/resistance trendline near $2.01 and is testing the 20-month EMA at $1.93. Historically, retests of this EMA have preceded upward moves, signaling potential bullish continuation if support persists. ChartNerd emphasized, “Hold the line!” as XRP navigates this level, highlighting its relevance in past market cycles.
XRP tests the monthly 20 EMA at $1.93 on its flipped S/R trendline, signaling a critical support level. Source: @ChartNerdTA via X
TradingView analyst DeGRAM, who specializes in structural pattern analysis, observes that XRP is forming a bullish base between $1.98 and $2.03. Multiple rebounds from this zone confirm strong demand, and recent price stabilization after a capitulation wick suggests that XRP may begin building higher lows. If this scenario holds, DeGRAM identifies potential recovery targets near $2.06–$2.09, contingent on buyers regaining short-term control.
From our own analysis, this support zone is particularly important in the current macro and liquidity context. XRP’s repeated rejections of lower levels indicate that market participants are willing to step in near $2, creating a concentration of buying interest that could define near-term price dynamics.
Accumulation Signals Highlight Supply Scarcity
On-chain data from CryptoQuant shows that over 1.32 billion XRP tokens were withdrawn from exchanges over the last month, with reserves falling from approximately $7.03 billion to $5.70 billion. Crypto analyst Niels (@Web3Niels) interprets this as accumulation by experienced holders, noting, “The supply is draining fast while the price is holding at $2. It simply means that smart money is accumulating with no short-term selling intent.”
XRP supply is draining fast, with 1.32B tokens removed from exchanges in a month, while the price holds at $2, signaling strong accumulation by long-term holders. Source: @Web3Niels via X
In practical terms, declining exchange reserves reduce liquidity available for trading, which can amplify price movements if buying pressure intensifies. Historically, similar reserve declines in XRP coincided with price rallies once technical support held, suggesting a pattern worth monitoring.
Market Fundamentals Support Medium-Term Strength
Ripple’s institutional partnerships and adoption trends provide additional context. Publicly announced collaborations and liquidity inflows contribute to improved sentiment, supporting the structural bullish setup.
XRP is holding strong in the $1.98–$2.03 support zone, showing bullish momentum with potential targets at $2.06–$2.09 amid growing institutional accumulation. Source: DeGRAM on TradingView
DeGRAM notes that these developments underpin medium-term accumulation, reinforcing technical signals. From our observation, the combination of low exchange reserves and institutional involvement creates a scenario where XRP’s near-term trajectory is increasingly sensitive to buyer activity around key levels.
What Traders Should Watch
For traders, the $1.98–$2.03 support zone is a critical pivot. If this zone holds, XRP may target $2.06–$2.09, though a break below $1.98 could signal further downside risk. Analysts are also observing the 20-month EMA at $1.93, as its support may define the cryptocurrency’s structural trend in the weeks ahead.
It’s important to balance this outlook with broader market considerations. While accumulation supports potential upside, XRP still faces resistance from a descending trendline and sector-wide volatility. Monitoring exchange reserves and market liquidity will help contextualize whether the support can hold under increased trading activity.
Final Thoughts
XRP is navigating a delicate balance between support and resistance. Its $2 support level and 20-month EMA are crucial in determining whether recent accumulation patterns translate into a sustained rebound.
XRP was trading at around 2.00, down 3.35% in the last 24 hours at press time. Source: XRP price via Brave New Coin
Investors should track XRP price live, exchange reserve changes, and key technical levels for informed decision-making. While the technical and on-chain indicators show promise, broader market dynamics and policy factors may still influence outcomes, underscoring the importance of scenario-based analysis.