XRP price is facing a decisive moment as it recently managed to cross the crucial $2 support level.
Analysts warn that a breakdown could signal a deeper correction.
Ongoing legal developments in the Ripple vs. U.S. Securities and Exchange Commission (SEC) lawsuit add another layer of uncertainty.
XRP Price Crosses $2 Support Despite Bearish Signals
XRP has seen sharp declines over the past week, with two major crashes—an 18.6% drop on March 8 and another 22.12% fall between March 7 and 10.
Despite attempts to recover, the token had remained down by 18.49% from its March 7 high.
However, it has recently noted a recovery today, and at the time of writing, it was trading at $2.20, post a 2.78% recovery in 24 hours.
Ali Martinez, a crypto analyst, had earlier flagged the $2 level as a key inflection point.
In a post on X, he had warned that a close below this threshold would confirm a head-and-shoulders breakdown, signaling a potential macro trend shift. Martinez stated,
“A close below $2 would confirm a head-and-shoulders breakdown, potentially signaling a macro trend shift.”
Crypto analyst BigCheds highlighted the risks of a breakdown, noting that XRP is on the verge of losing support at $1.90. According to him,
“If this happens, XRP could see increased selling pressure, leading to a larger drop in price.”
Ripple Lawsuit Nears Key April Deadline
The SEC vs. Ripple lawsuit remains a significant factor influencing XRP’s price action.
Lawyer Fred Rispoli highlighted April 16, 2025, as a key deadline for Ripple’s legal filings. He mentioned,
Market participants remain divided on whether the case will conclude soon. X user Jay Abreo commented sarcastically,
“If nothing happens in April, something will happen in May. If nothing happens in May, June is the month.”
While the lawsuit’s outcome remains uncertain, growing optimism about a resolution has kept institutional interest in XRP intact.
Institutional Inflows Defy Market Downturn
Despite XRP’s recent price struggles, institutional inflows suggest continued confidence.
A CoinShares report showed that while Bitcoin and Ethereum saw outflows of $756 million and $89.2 million, respectively, XRP recorded $5.6 million in inflows.
Ripple’s Chief Technology Officer David Schwartz also downplayed the broader market downturn, calling Bitcoin’s dip a “buying opportunity.”
At the time of his comments, Bitcoin had seen a 24-hour drop of 1.39%, and a 2.74% weekly decline.
XRP’s Next Move Hinges on $2 Support
For now, XRP’s price trajectory depends on its ability to hold above $2. If the support level breaks, analysts warn of a possible decline toward $1.20.
However, if bulls regain control, XRP could target resistance at $3 and $3.40. Crypto analyst Bitcoin Buddha remains cautiously optimistic.
“XRP looks ready for a reversal at this critical area,” he said, referencing its bounce from a low of $1.95 earlier on March 11.
The resolution of the XRP lawsuit could provide a strong catalyst, but until then, the $2 support remains the battleground for bulls and bears.
