XRP is showing increasing vulnerability as its price action flirts with the critical $2 support level, raising the risk of a deeper market breakdown.
Notably, the asset’s recent trading activity indicates that bulls are struggling to defend this threshold, and failure to hold it could trigger a sharp decline toward the next major support at $1.20, according to insights from cryptocurrency analyst Ali Martinez.
In an X post on December 3, Martinez noted that XRP is displaying a clear downward trajectory that began after the token peaked above $3.40 in mid-year.
Since then, the asset has consistently set lower highs and lower lows, pointing to persistent selling pressure.
The most recent bounce attempts near the $2 zone appear weak, with price action repeatedly failing to regain upward momentum. This behavior highlights waning demand as the market approaches a historically significant floor.
The long-term structure supports the bearish outlook. The $2 zone has been a key support throughout 2025, but repeated tests have weakened it.
In this case, the latest retest shows tight volatility and shallow rebounds, a setup that often precedes sharp drops. A clean break below $2 would expose a wide liquidity gap toward $1.20, the next significant support area.
A collapse toward $1.20 would represent one of XRP’s steepest drawdowns of the year, and Martinez’s outlook suggests that such a move is increasingly plausible.
XRP price analysis
Notably, the bearish technical structure comes as XRP makes a short-term recovery after recent turbulent trading sessions. By press time, the asset was valued at $2.18, having gained over 7%, while on the weekly timeframe the token is up about 1%.
Indeed, the bearish structure is also reflected in the fact that XRP is currently trading below its 50-day simple moving average (SMA) of $2.34 and 200-day SMA of $2.65, signaling short- and medium-term downward pressure as the price fails to reclaim these key levels.
The 14-day Relative Strength Index (RSI) stands at 47.6, firmly in neutral territory, indicating balanced momentum without immediate reversal pressure but underscoring the need for a catalyst to push toward the SMAs for bullish confirmation.
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