XRP Battles Critical $2.20 Support Level — Will It Target $2.70 Or Slip To $1.96?

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As a seasoned crypto investor with over a decade of experience under my belt, I have weathered many market storms and witnessed the rise and fall of numerous digital assets. The recent decline in XRP prices has been no exception, but as a believer in the long-term potential of this promising cryptocurrency, I remain optimistic about its future prospects.

Over the last several days, XRP’s value has dipped along with the overall crypto market. Yet, even during this slump, the price of XRP has successfully held onto crucial support points, suggesting it may be on the verge of a rebound.

It’s worth noting that technical analysis suggests the $2.20 mark as a significant point to focus on when tracking XRP’s future movements. This observation was made by well-known crypto analyst Ali Martinez, who believes that XRP’s next major action could depend on how it performs at this price point.

Key Levels To Watch: $2.20 Support And $2.70 Resistance

Since the 17th of December, the crypto market has experienced increased selling activity due to Bitcoin dipping below its support values, causing price adjustments across multiple cryptocurrencies. Specifically, XRP’s value dropped from $2.708 on the 17th to a low of $1.98 on the 20th, marking a substantial 27% decrease within just three days.

Following a rise to $1.98, the XRP price subsequently bounced back and surpassed the $2 mark. Currently, XRP is being exchanged near $2.20, even though it has dropped by approximately 7% over the past week.

Crypto expert Ali Martinez has found himself intrigued by the recent fluctuations of XRP around the $2.2 price mark. He proposes two possible scenarios on where XRP may head next. As per Martinez, it’s significant for XRP to maintain its position above the $2.20 support level if a bullish trend is to continue in the short term.

If the current level stays firm, the token could potentially enter a period of consolidation. However, there’s still a possibility of another effort to overcome the resistance at $2.70. If successful, this could push the cryptocurrency above $3 for the first time in years, provided a strong bullish momentum develops above $2.7. Conversely, if the price falls below $2.20, it might lead to another swift drop in XRP prices towards $1.96. This decline could cease only when fresh buying interest is attracted.

Image From X: ali_charts

Whale Accumulation Up Amid Crypto Market Correction

According to data from Santiment, it appears that large XRP investors (whales) have been showing increased interest in XRP during this recent market downturn. In fact, wallets containing between 1 million and 10 million XRP coins have amassed an additional 80 million XRP since December 17. This accumulation suggests that these whale addresses are confident in the long-term prospects of the token. This buildup could potentially serve as a buffer against any further price drops below the $2 level and pave the way for a potential future recovery.

Based on our analysis, the optimistic sentiment continues as the technical study of XRP price using Elliot impulse waves indicates that the recent dip below $2 may signify the conclusion of the second corrective wave. This could pave the way for the commencement of the bullish wave 3, which is an upward trend, very soon.

At the time of writing, XRP is trading at $2.27.

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2024-12-22 21:04