XRP has recently faced a considerable pullback in its price, dropping by 15% from a high of $2.58 to $2.18 during a broader market downturn. This significant decline has raised concerns among investors about the coin’s immediate future. However, experts believe that the key to XRP’s continued growth and potential for a strong rally lies in its ability to hold the $2 support level. This crucial threshold could determine whether the altcoin will regain momentum or experience further setbacks.

Analyst Casi Trade has been closely monitoring XRP’s price movements and provided an update on the token’s current position. According to Casi, XRP has recently broken through key support levels, leading to a vulnerable position. It is now trading just above the 0.236 Fibonacci retracement level, a commonly used tool in technical analysis to assess potential price retracements. Given this situation, she suggests two potential scenarios for XRP’s price action in the near future.

The first scenario is an ABC correction pattern. In this case, XRP would undergo a short-term decline, followed by a consolidation phase around the trendline before potentially moving higher again. This scenario aligns with the broader market structure and indicates that the token could find support near the current trendline, allowing it to recover and move back into a bullish phase.

However, Casi also cautioned that there’s a possibility that XRP could extend its bearish movement and fall below the trendline, causing further price weakness. The success of either scenario depends largely on XRP’s ability to hold key support levels, particularly around the $1.90–$2.00 range, which coincides with the 0.382 Fibonacci retracement level. This range is seen as critical for XRP’s short-term trajectory, as a failure to hold above this support zone could lead to more significant declines, triggering further sell-offs.

At the time of writing, XRP is showing signs of recovering from the steep drop, trading around $2.37, but still down by 6.21% in the last 24 hours. This slight recovery could indicate that XRP might hold its ground above the $2 level, allowing for a potential upward movement. Nonetheless, analysts continue to emphasize that the $2 price point remains pivotal in determining whether XRP can reclaim its previous highs or struggle to regain its bullish momentum.

Chad Steingraber, another market commentator, weighed in on the situation, suggesting that if XRP could “double tap” the $2 level—meaning it would test this support twice—it could act as a solid springboard for the token to reach new all-time highs. Steingraber emphasized that this testing of the $2 range could help solidify XRP’s position before a stronger upward push. He expressed confidence in XRP’s potential, provided it can solidify support at this level.

Income Sharks, another prominent analyst, also offered insights into the possible future movements of XRP. He highlighted that if XRP bulls can defend the $2 level and establish a more structured bullish consolidation pattern, it could present an attractive buying opportunity for investors. However, Income Sharks warned against FOMO (fear of missing out)-driven price movements, pointing out that large daily candles often signal short-term excitement but may not lead to sustained buying pressure. He advised that the more rational entry point for investors would be when XRP shows a more consistent bullish trend after holding above the $2 level.

XRP’s performance at this critical $2 threshold is not just about short-term price action—it reflects broader trends in the cryptocurrency market. As the market continues to experience volatility, with many coins seeing steep fluctuations in their value, XRP’s price stability at the $2 level could offer a sense of confidence to investors, suggesting the possibility of a more sustained upward movement.

In conclusion, XRP’s price action over the coming days and weeks will depend heavily on its ability to hold the $2 support level. If it can maintain this price point, there’s significant potential for the coin to resume its upward movement and possibly break new all-time highs. On the other hand, if XRP fails to hold the $2 range, the cryptocurrency could face further declines, testing lower support levels. Therefore, the $2 level remains a critical point of focus for analysts and investors alike, as it will ultimately determine whether XRP continues its upward trajectory or enters a more prolonged bearish phase.