Skip to content

Sign Up

or

Forgot Password?

Don't have an account?

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account?

XRP Bulls vs. Bears: Will $2 support stop a major crash?

XRP Bulls vs. Bears Will $2 support stop a major crash

XRP’s focus on fast, low-cost transactions has made it the third largest cryptocurrency in the world (excluding stablecoins) — and one of the main beneficiaries of the late 2024 rally.

However, at least thus far in 2025, macroeconomic challenges have proved dominant. The cryptocurrency market, in particular, has been shaken up by the risk asset selloff that’s going on due to the possible disruptions of the Trump administration’s tariff policies.

Yet despite recent challenges, XRP has performed better than most digital assets. At press time, XRP was changing hands at a price of $2.33, having marked a 12.21% gain on a year-to-date (YTD) basis after a 5.13% move to the upside in the past week.

XRP price year-to-date (YTD) chart. Source: Finbold
XRP price year-to-date (YTD) chart. Source: Finbold

However, price action does not occur in a vacuum. The token’s current price is dangerously close to a key support level — and a renowned technical analyst has outlined exactly what a crash below that level could entail.

A drop below $2 could lead to an XRP crash

XRP appears to be forming a head-and-shoulders chart pattern on the weekly chart, as highlighted by noted cryptocurrency technical analyst Ali Martinez in a March 17 X post.

The head-and-shoulders pattern is a sign of reversal — indicating that the hitherto prevailing uptrend is coming to an end. This pattern consists of three peaks — the first and last of which are roughly equal and represent the ‘shoulders’, while the middle peak represents the head. The ‘neckline’ formed by the bottoms between the peaks acts as a level of support.

In this particular instance, that neckline is at the $2 level, roughly 14.16% below current prices. With a head-and-shoulders pattern, a successful breakout leads prices to drop to a point equal to the distance between the ‘neckline’ and the top of the ‘head’.

If the pattern is legitimate, prices moving below $2 could lead to an XRP crash which would see prices drop to approximately $1.25, for a combined drop of 46.35% compared to current prices.

Lastly, readers should be aware that Martinez’s chart is dated March 16, 11:54 UTC — but his post on X came a day later. While timing is certainly important in technical analysis, no major developments occurred between the chart date and the time of the post.

Escrow schedule could depress XRP prices despite widespread adoption

On the other hand, as reported by Finbold on March 15, XRP is seeing a steady increase in the number of addresses, which hit a record number of 7 million recently — which highlights an increasing rate of adoption and mainstream popularity.

Martinez also outlined a more bullish case — if XRP manages to break out past $3, its next major price target would be in the $4.80 to $5 range, followed by a possible rally to a new all-time high of $15. With that being said, readers should note that roughly $465 million in XRP has been moved from escrow holding, in a move that could present significant downward pressure on the asset’s price.

Featured image via Shutterstock

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users worldwide
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.