XRP Price is back above $2 after a rollercoaster week, rebounding to $2.19 as traders hold their ground.
Speculation over a potential altcoin ETF has fueled fresh buying interest, but analysts aren’t convinced the rally will last.
Crypto analysts and trader warn that a major breakdown could be on the horizon, with XRP possibly sinking to $1.24 if key support levels fail.
XRP Recovers as Traders Defend $2 Support
XRP price dropped to $1.95 in early trading before bouncing back to $2.19 as the U.S. session opened.
This recovery coincided with CME Group’s announcement of Solana futures, adding fuel to speculation that altcoin ETFs could be next in line for regulatory approval.
Derivatives data supports the bullish sentiment. Despite XRP’s 24.4% price drop over the past five days, open interest declined by just 19.3%, from $3.73 billion to $3.01 billion.
This suggests that traders are holding onto long positions, betting on a price rebound.
The Fibonacci retracement levels on the daily chart highlight critical support and resistance zones.
XRP is currently hovering near the 0.786 retracement level at $1.94, a historically strong support area.
Below that, the 1.618 extension at $0.98 looms as a worst-case scenario if bearish momentum intensifies.
However, failure to hold above $2 could set off a deeper decline, with $1.94 standing as the last line of defense before bears take full control.
Analyst Flags Trouble—XRP Price Breakdown to $1.24?
Trader Josh Olszewicz is sounding the alarm on a bearish Head and Shoulders (H&S) pattern forming on the daily chart.
This pattern, if confirmed, typically signals the end of an uptrend and the start of a deeper correction.
The key level to watch is the neckline at $2. If XRP loses this support, the next stop could be $1.94.
And if the selling pressure intensifies, Fibonacci extensions point to a possible drop all the way to $1.24.
Olszewicz also highlighted a bearish kumo breakout under the Ichimoku Cloud, a sign that momentum is weakening.
“1D XRP: H&S + bearish kumo breakout watch,” he posted on X, hinting that the downside risk shouldn’t be ignored.
While traders focus on short-term moves, a controversial valuation model has surfaced, claiming XRP could eventually hit $18,000 per coin.
The report, published by Valhill Capital, argues that if Ripple dominates global financial transactions, XRP’s value could skyrocket.
If ETF speculation continues driving demand, XRP price could push higher. But if the $2 level breaks, the bearish signals will come into play, and prices could slide further.
