Ripple’s XRP has managed to hold onto its critical $2 support level, but the market’s current volatility and weak retail participation have raised concerns. While bullish signals are emerging, XRP’s price action faces a crucial test as market sentiment remains cautious.

XRP Shows Resilience Amid Market Uncertainty

Despite widespread market fear, XRP’s price structure has remained relatively strong compared to other large-cap cryptocurrencies. The daily chart of XRP shows that sellers have been rejected at key levels, reinforcing a potentially bullish structure. The relative strength index (RSI) has bottomed out, indicating that the selling pressure may be nearing exhaustion.

Additionally, XRP futures traders have been de-risking their positions, with liquidations reaching over $1 billion last week. These traders are pulling back, contributing to the overall market volatility. Once the spot selling pressure eases, XRP could be poised for a potential rebound, although the current trading volume, which has dropped by nearly 41%, suggests weak conviction at the $2 support level.

Retail Capital Still Missing

One of the key concerns for XRP’s price recovery is the lack of retail capital. Despite the defense of the $2 level, the “fear of missing out” (FOMO) has not materialized yet. Retail traders have remained largely absent, and this has kept XRP’s price action muted.

While XRP whales—those holding large amounts of the cryptocurrency—are actively accumulating, retail investors are still sitting on the sidelines. This is evident as the number of wallets holding between 1 million and 10 million XRP has reached a three-month high of 5.66 billion XRP. Additionally, wallets with 10 million to 100 million XRP have accumulated 390 million tokens in the past few days. These larger players have helped keep XRP above the $2 mark, with the price currently trading at $2.22.

A Crossroads for XRP: Will the Bulls Take Control?

XRP is at a crucial crossroads. While whale accumulation is helping defend the $2 support level, retail participation remains key for a sustained recovery. If retail capital begins to flow back into the market, it could fuel a larger rebound. However, if retail interest continues to be lackluster, XRP’s price may struggle to hold its ground.

The futures market is also a point of concern. Although futures traders are unwinding their positions and big players are absorbing sell-side pressure, a definitive bottom for XRP has yet to be reached. If futures traders ramp up leverage without corresponding spot demand, the risk of long squeezes could delay any potential upward movement.

Monitoring Liquidity Dynamics

Liquidity remains a critical factor in XRP’s price trajectory. While whale activity has kept the price above $2, the lack of retail involvement means the market remains fragile. As such, monitoring liquidity dynamics in the coming days will be crucial for determining whether XRP can establish a more stable floor or if a deeper pullback is imminent.

Conclusion

XRP has shown resilience at the $2 level, but a sustained recovery will require stronger retail involvement and a reduction in market fear. For now, whale accumulation is keeping the price afloat, but without increased market participation, XRP may face further volatility. Traders should continue to monitor liquidity and retail capital inflows to gauge the potential for a meaningful rebound.