XRP Price Surpasses $2: What's Next for Ripple's Token?
Market Update
XRP has surged to $2.02 following a decisive breach of the $1.96 resistance level, now acting as support. This move has traders speculating if XRP can maintain its position above $2 to trigger further gains.
Background
Investors have shown renewed interest in large-cap altcoins like XRP, which previously struggled to hold above $2. The $1.96 level has frequently been a pivot point, with previous rallies failing to maintain momentum.
This breakout differs due to its strong volume, indicating institutional participation. If XRP holds above $2, it may encourage sidelined investors to re-enter the market, avoiding the typical sell-off scenario.
Technical Analysis
In the 24 hours ending January 3, XRP rose 8.7%, reaching $2.0227, with a significant volume spike at 17:00 UTC. The $1.96 level, now a support, helped propel the price into the $2.00-$2.03 range. A new support zone at $2.01-$2.03 has emerged, crucial for sustaining the breakout.
XRP's price corrected slightly from $2.031 to $2.023, but the decline was controlled, maintaining the breakout's integrity.
Price Action Summary
- XRP increased from $1.8766 to $2.0227 (+8.7%) in 24 hours.
- The pivotal breakout occurred as XRP surpassed $1.96 on a volume surge.
- A new support zone at $2.01-$2.03 has formed above the psychological $2.00 level.
- Price retraced from $2.031 to $2.023, preserving the breakout structure.
Trader Insights
The focus now is on maintaining the support, not chasing new highs.
- If XRP holds the $2.01-$2.03 range and stays above $2.00, the breakout remains intact, potentially targeting $2.03-$2.05 next. Sustained trading above recent highs indicates continued buyer control.
- If XRP falls below $2.00 and $2.01, it suggests a failed breakout, likely leading to a retest of $1.96.
- If $1.96 doesn't hold, the rally risks being seen as a liquidity event, possibly reverting to previous price levels.
In summary, while $2.00 is a significant level, $1.96 is the critical threshold. Defending both levels could lead to further upward momentum; failure to do so might result in a return to prior trading ranges.