XRP Price Recovery Rejected Again, Can It Avoid Falling Below $2?

Core Insights - XRP price is under pressure due to deteriorating broader crypto market conditions, struggling to maintain recovery attempts [1] - Despite selling pressure, XRP investors are accumulating to defend key support levels and limit downside risk [1] Market Sentiment - Current sentiment around XRP is fragile, with liquidation data indicating rising downside risk, particularly if the price approaches $2.00 [2] - A significant cluster of long liquidations near $2.02 represents approximately $25.4 million in leveraged positions, which could amplify selling pressure if breached [2][8] Accumulation and Demand - Macro indicators suggest improving underlying demand, as exchange position change data shows net outflows from exchanges, indicating rising buying pressure [4] - This marks a shift from previous months dominated by selling pressure, with sustained accumulation potentially stabilizing price behavior [5] Price Levels and Support - XRP is currently trading near $2.06, maintaining an active downtrend but holding above the critical support level of $2.03 [6] - This support level has withstood multiple tests, indicating strong investor interest, and continued accumulation is expected to defend this level [7] Potential Outcomes - A successful bounce above $2.10 could break the downtrend and regain momentum for XRP [7] - However, broader market weakness could lead to a decisive break below $2.03, exposing XRP to a drop under $2.00, which would invalidate the bullish thesis and trigger significant long liquidations [8]