TL;DR

XRP is hovering near critical support at $2. Analysts suggest a rebound could push it toward $2.80, but failure may open the door to short setups and deeper pullbacks. In addition, massive whale sell-offs as of late raise the risk about a further correction.

Can Bulls Regain Control?

Ripples XRP witnessed a substantial resurgence on March 19 when the companys CEO, Brad Garlinghouse, announced the end of the legal battle between his entity and the US Securities and Exchange Commission (SEC). The price quickly soared to $2.60, but just as abruptly, it headed south in the following days in what seemed a sell-the-news moment.

The pullback intensified in the past few days, and XRP neared the psychological level of $2 just hours ago. It currently trades at around $2.09 (per CoinMarketCaps data), representing a 20% decline since the local peak observed at the time of Garlinghouses disclosure.

Despite the negative performance, XRP remains a favorite topic for analysts, and many have touched upon the matter recently. The X user CRYPTOWZRD noted that Ripples cross-border token trades quite close to the $2 support area, predicting that a potential reversal from the current position may push the valuation toward the $2.80 resistance level. 

Moving below $2.10 and holding there for a while can lead to a short. However, moving towards $2.33 and then a healthy reversal will offer a better short opportunity. Holding above $2.33 for a while may lead to a long. We now need to wait for the next healthy, mature trade setup to engage with the trade, they specified. 

The analyst, using the X moniker The Great Matsby, gave their two cents, too. They assumed that XRP might have already bottomed at the beginning of February when the price briefly tanked under 1.80.

Peter Brandts Opinion

Veteran trader Peter Brandt also chipped in. Not long ago, he suggested that XRPs price has formed a typical head-and-shoulders (HS) pattern. He predicted bullish future if the valuation soars above $3 and a further pullback to as low as $1.07 if the resistance level of $1.90 doesnt hold. 

Meanwhile, whales dumped 1.12 billion XRP in the span of 48 hours, potentially setting the stage for a deeper correction. After all, large sell-offs may trigger panic across the space, with smaller players also leaving the ecosystem.

Such efforts also increase XRPs circulating supply, which, combined with non-climbing demand, should lead to a price slump. The stash of 1.12 billion tokens equals almost $2.5 billion (calculated at current rates).