XRP was already there trading in a downtrend over the last few days next to the wider one cryptocurrency market. However, despite this lull, the XRP price has managed to maintain critical support levels and is currently bracing for a potential rebound.

Interestingly, technical analysis indicates that the $2.20 level is a key level to watch for the future of XRP. This was noted in an analysis by popular cryptocurrency analyst Ali Martinez, who highlighted that XRP’s next major move could depend on its performance at this threshold.

Key levels to watch: $2.20 support and $2.70 resistance

The cryptocurrency market has been under significant selling pressure since December 17, led by the Bitcoin Breaking Below Support Levelswhich leads to noticeable price adjustments for various cryptocurrencies. Specifically, the price of XRP dropped from $2,708 on December 17 to a low of $1.98 on December 20. This represents 27% in three days.

After reaching $1.98, the price of XRP rebounded and returned to the $2 price level. As it stands, XRP is currently trading at around $2.20, although it is still down 7% on a weekly basis.

XRP’s movement around the $2.2 price level attracted the attention of cryptocurrency analyst Ali Martinez, who suggested two directions for the cryptocurrency’s development. According to Ali MartinezXRP’s ability to hold above the support at $2.20 is crucial to its near-term bullish outlook.

If this level remains intact, the token may enter a consolidation phase, but another attempt to overcome the resistance at $2.70 remains in play. Hence, a robust bullish momentum above $2.70 could very well send the cryptocurrency above $3 for the first time in years. On the other hand, a break below $2.20 could trigger another quick decline in the XRP price towards $1.96 before it begins to attract up-to-date purchasing interest.

Picture From X: ali_charts

Whale accumulation grows amid cryptocurrency market correction

On a chain data from Santiment suggests that XRP has attracted interest from whales during the recent downturn. Since December 17, an additional 80 million XRP has accumulated in wallets ranging from 1 million to 10 million XRP coins, indicating high confidence in the token’s long-term potential among whale addresses. This accumulation could provide protection against further declines below the $2 level and set the stage for an eventual rebound.

In addition to the bullish outlook, technical analysis of the XRP price using Elliot impulse waves suggests that the recent break below $2 could signal the end of the second impulse wave, which is a corrective wave. With this in mind, bullish impulse wave 3 is scheduled to start soon.

At the time of writing, the price of XRP is $2.27.

Featured image from Tech Xplore, chart from TradingView