XRP Teeters at a Critical Junction, Clinging to the $2.00 Support Level

The token's recent bounce from $1.90 was sharp—but it hasn't inspired confidence. Daily trading volume has plunged by more than 50%

XRP price is attempting to stay afloat at a key support level, but technical indicators suggest that the token’s fate hangs in the balance.

XRP Price Struggles Despite Optimism

While the crypto community is buzzing with optimism around Ripple’s ongoing legal battle and increasing adoption, XRP price action presents a more cautious picture.

The token’s recent bounce from $1.90 was sharp, but it hasn’t inspired confidence yet. Daily trading volume has plunged by more than 50%, signaling that traders are hesitant to take aggressive positions. If XRP loses its grip on the $2.00 level, the next major support lies around $1.20, presenting a potential 40% downside risk.

Some technical analysts are even spotting the early signs of a bearish head and shoulders pattern forming on the charts. Combined with thinning volume and broader market hesitation, XRP’s short-term fate hangs in the balance.

Legal Breakthroughs and Record User Growth Boost Futures

In contrast to the price action, XRP’s fundamentals are heating up. The latest development in Ripple’s legal standoff with the U.S. Securities and Exchange Commission (SEC) could prove monumental. The two sides have submitted a joint motion to pause the appeals process – a move that many see as the beginning of the end for the long-standing case.

Even more bullish is the network data: XRP now boasts over 6.26 million wallet addresses holding at least one token – a new record. This surge in holders underscores a growing belief in Ripple’s future, particularly as speculation around a potential spot XRP ETF continues to grow.

Massive Rally After Drop to $1.20?

Despite these bullish signals, the overall market mood remains wary. Global macro uncertainty and choppy conditions across crypto and equities are keeping traders on edge.

Some experts, like EGRAG Crypto, believe that a drop to $1.20 could be the shakeout needed before a massive rally – potentially even toward ambitious targets like $22 or $30.

But first, XRP must do one thing: hold the $2.00 line. Whether this pivotal level becomes a launchpad or a trapdoor will determine XRP’s next big move.

All eyes will be on how this scenario unfolds in the coming days, as the fate of the world’s seventh-largest cryptocurrency hangs in the balance.