XRP surged to $2.45 on Sunday, before being sharply rejected and falling back to a critical support level that could lead to further losses if breached. At the same time, a large whale with significant PnL reduced their XRP buying position.
Back to $2?
At this time last week, the price of XRP had surged to a multi-month high of nearly $2.7. Although the price initially halted there, buyers began another rally on Wednesday, leading to a touch of $2.65. However, the breakout attempts were largely unsuccessful and subsequent rejections pushed XRP down to $2.3 on Friday.
The asset recovered some ground over the weekend and even challenged the resistance level of $2.5 during a brief rally on Sunday across the market, where it stalled once again. As of now, Ripple's token has returned to the $2.3 level, which is a key support level, according to Ali Martinez, that has been tested several times over the past few weeks.
However, if the asset's price falls below this level, this prominent analyst predicts the price will continue to drop to $2, which is also an important support threshold that has protected XRP multiple times since the beginning of the year.
Whale Watch Perps, an X account that tracks the positions of large whales, reported that one of these major market participants with an impressive PnL profile has reduced their XRP buying position, which could also be seen as a bearish signal.
Gospel
After the previous drop to $2.3, Martinez noted that XRP flashed a buy signal according to the hourly chart, according to TD Sequential, which could mean that the price might reverse in the near future.
In addition, Xoom stated on X that market interest in XRP has been "reset," as the number of Google searches for this asset increased over the past week after a long period of price decline. According to X users, the price breakout occurred exactly at such times.
