This fundamental level will determine whether XRP goes back to $2.7 or below $2 (analyst)

TL:DR;

Ripple’s cross-border token took the recent market-wide crisis pretty badly, with prices dumping from over $2.7 to under $2 in a matter of days. The asset has recovered some ground, but is now at a pivotal level that will determine whether it resumes its bullish run or falls again.

The start of the trading week was quite bullish for XRP, as the company surrounding it announced on Monday that its long-awaited stablecoin will officially launch for trading the next day.

XRP made a massive run, going from less than $2.4 to more than $2.7 when the release date arrived. However, it reversed course soon after and the collapse of the broader market took it hard south.

In fact, the Ripple token crashed 28% from the aforementioned local peak to $1.96. Many XRP whales took this opportunity to accumulate more tokens, which may have helped the asset regain some ground as it reached almost $2.4 yesterday.

However, it has lost its momentum again and is now struggling to stay above $2.2. According to popular crypto analyst Ali Martinez, this level is particularly significant for XRP’s future price movements.

If it manages to hold, the token could resume its recent bullish activities and head towards $2.7 once again. Instead, it risks falling below $2 for a third time in December if it breaks below.

yes $XRP it can hold above $2.20, it could consolidate for a while before making another shot at the $2.70 resistance. But if the $2.20 support is broken, a decline to $1.96 becomes imminent. pic.twitter.com/cdtdtSwzKy

— Ali (@ali_charts) December 21, 2024

XRP fell below that line to $2.17 today, but managed to bounce back, at least for now. The next few days will be crucial in determining XRP’s closing price at the end of the year and whether there will indeed be a Santa rally, as many expected.

With its most recent correction, XRP’s market cap has once again dropped below $130 billion. This means it has lost its third position to USDT, whose market capitalization is close to $140 billion.

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