The price of XRP has spent the last few years days in a gentle position after falling from $2.20 and retesting $2, which has now become the most watched level on the price chart. The weekly candle has managed to close slightly green for the first time in over a month, the rebound did not erase the weakness caused by the recent sell-off.
The latest technical analysis from Guy on the Earth focuses on this exact moment and notes that the entire structure of XRP now depends on whether this $2 zone can continue to function as an inflection point that stops further declines.
Holding $2 as an vital bull support
Guy on Earth describes the $2 price level as a dividing line between resilience and a potentially long period of stagnation. His analysis shows that XRP is holding on to this level despite several weeks of bearish candles, meaning that sellers have failed to gain full control even after the broader market pulls back.
The weekly chart he shared shows a group of past support zones roughly ranging from $2 to $1.95, making this area the foundation of the current trend. According to the analyst, a loss of the $2 price level could cause XRP to drift for months or even years, with little upward movement beyond isolated opportunities at momentary lows. For now, the fact that XRP ended the past week in the green, even slightly, keeps the structure intact.
It is impossible to understand the reaction of XRP around $2 without watching Bitcoin. In his opinion, the best scenario for XRP is Bitcoin’s rebound above $100,000 and a subsequent decline in BTC’s dominance. A falling RSI on the chart on the XRP weekly time frame also indicates a change in momentum, but its path will ultimately follow in whatever direction Bitcoin chooses next.
XRP price chart. Source: @guyontheearth On X
Hence two divergent paths
Guy on the Earth outlines two possible outcomes as the market enters a critical phase. The first is a rebound from current levels that allows altcoins to outperform again, opening the door for XRP to revisit the mid-range zone around $2.60 before making any attempt to reach previous highs.
Second means a deeper market decline which pushes XRP below the $2 price level. This move would turn key support into resistance and trigger a prolonged period of bearish price action. Nothing inspiring will happen below, except for well-timed purchases when the lows appear to be approaching.
Both scenarios are realistic, and $2 is the dividing point that will determine which one unfolds. The analyst is rather focused on an upward movement, but warns that investors must be aware of the risk if Bitcoin doesn’t stabilize soon.
At the time of writing, XRP is trading at $2.02 after falling 1.2% in the last 24 hours and is at risk of missing the $2 support level.
Featured image created with Dall.E, chart from Tradingview.com
