XRP’s current trading has put in a dodgy situation with many wondering how the token will perform in the future.
The $2 mark is still the most crucial support level for XRP, according to cryptocurrency researcher Ali Martinez, indicating its significance for the token’s future price movement.
The prediction comes at a time when XRP is trading at $2.34, down 4.32% as compared to the same time last day.
Martinez Sees $2 as Crucial For XRP
Martinez asserts that if the price of XRP stays over $2, it will probably continue to rise, maybe surpassing resistance levels and generating additional gains.
There may be more volatility and a chance of further drops, though, if the price drops below this level.
Martinez’s analysis is predicated on how the price of XRP has behaved in relation to previous support levels.
The digital asset has been able to recover from lower price points over the last few months thanks to the $2 threshold, which has shown to be a powerful line of defense.
Since the price of XRP has frequently oscillated about this threshold, its ability to hold above $2 is regarded as a sign of its robustness.
However, a change in market sentiment, with possible sell-offs or negative pressure, could be indicated if XRP is unable to hold onto this crucial support. The $2 support level is therefore essential in predicting the short-term price direction of XRP.
XRP Near Term Trajectory: What Do Investors Expect?
For the near-term price action of XRP, the technical indicators now point to conflicting indications. The crucial $2 support level, which is seen by traders as a major region of interest, is still above the asset.
A “golden cross,” or possible bullish signal, is formed when the 50-day moving average crosses over the 200-day moving average, suggesting a neutral attitude.
To imply that XRP is neither overbought nor oversold, the Relative Strength Index (RSI) is still in neutral area.
A break above the $2.30 to $2.50 range, where the asset is seeing some resistance, might lead to additional gains.
A negative move could be indicated, though, if the $2 support is not maintained.
What Will Help XRP Rise?
A price increase for XRP could be caused by a number of things. Investor confidence may be bolstered by positive market sentiment, especially following positive developments in its continuing legal battle with the SEC.
Furthermore, expanding collaborations with financial institutions and a greater use of XRP for international payments may improve its demand and usefulness.
Technically, bullish momentum could be sparked by a break above significant resistance levels, like $2.50. Additionally, altcoins like XRP are frequently impacted by the performance of the larger cryptocurrency market, especially the fluctuations in the price of Bitcoin.
Positive market trends and stronger fundamentals may contribute to XRP’s ascent.
Also Read: Ripple CTO: Focusing Solely On XRP Would Restrict Customer Reach