XRP Bulls Face Critical Test as Price Plunges – Can $2 Support Hold?

Largest Weekly Drop Since 2022 Puts XRP at Risk of Further Decline

XRP, the cryptocurrency powering Ripple's cross-border payment solutions, has suffered a dramatic 27% drop in the past week, marking its steepest weekly decline since November 2022. According to data from TradingView and CoinDesk, the sharp sell-off has left investors on edge as the digital asset hovers near a critical support level at $1.95.

This level plays a crucial role in XRP’s market structure, having acted as a key demand zone while forming a head-and-shoulders (H&S) pattern since December. The H&S formation, a classic bearish reversal setup, consists of three peaks—the middle being the highest—along with a "neckline" that connects the bases of these peaks. If XRP falls below this neckline, it could signal a shift from bullish to bearish momentum, potentially leading to much deeper losses.

Traders are closely watching the $2 support level, as its failure could confirm the H&S breakdown and trigger a slide toward $0.60, a price point that served as strong resistance last year. Bulls must now step in with buying pressure to prevent this scenario, or XRP could be in for a much steeper decline.