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

XRP price continues to struggle as broader crypto market conditions deteriorate. The token has remained under pressure for several days, failing to sustain recovery attempts. 

Despite persistent selling, XRP investors are actively accumulating, aiming to defend key support levels and limit downside risk.

XRP Holders Change Their Stance

Current market sentiment around XRP remains fragile as liquidation data highlights rising downside risk. According to the liquidation heatmap, XRP long traders face significant exposure if the price slips toward $2.00. A dense cluster of long liquidations sits near $2.02, representing approximately $25.4 million in leveraged positions.

A move into this zone could quickly erase bullish confidence. Forced liquidations would amplify selling pressure and attract short sellers.

This shift would likely tilt sentiment decisively bearish, especially among derivatives traders who have maintained optimism despite XRP’s prolonged downtrend and weakening short-term momentum.

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Despite near-term weakness, macro indicators suggest improving underlying demand. Exchange position change data shows an increase in green bars, signaling net outflows from exchanges. This trend typically reflects rising buying pressure, as investors move XRP into private wallets rather than preparing assets for sale.

This marks a notable shift from the previous three months, when selling pressure dominated XRP price action. Sustained accumulation could help stabilize price behavior if broader market conditions do not worsen further.

The transition from distribution to accumulation supports the possibility of a medium-term recovery scenario.

XRP Price May Be Safe From Further Decline

XRP price is trading near $2.06 at the time of writing, maintaining an active downtrend that has capped recovery for over ten days. The token continues to hold above the $2.03 support level, which remains critical for short-term market structure and trader confidence.

This support has withstood multiple tests in recent weeks, suggesting strong investor interest at current levels. Continued accumulation is expected to defend $2.03, even if XRP consolidates near that range.

A successful bounce could push the price above $2.10, allowing XRP to break the downtrend and regain momentum.

However, broader market weakness could override these bullish efforts. A decisive break below $2.03 would expose XRP to a drop under $2.00.

Such a move would invalidate the bullish thesis, trigger roughly $25 million in long liquidations, and potentially send XRP down to $1.93 under intensified selling pressure.