XRP Tests Critical $2.00 Support After Heavy Whale Selling

XRP is currently testing a critical $2.00 support level after a period of intense whale selling that contributed to the formation of a clear descending-triangle pattern on its chart. Traders and analysts are watching the $2.00 mark closely: if this support holds, a short-term rebound toward $2.72 is possible; however, sustained selling pressure could see the token break lower and target deeper support zones.

From a technical standpoint, the descending-triangle pattern is a traditionally bearish continuation formation, but its signal strength depends on the context of volume and momentum. Recent on-chain data and order book behavior indicate that several large holders—commonly referred to as whales—have been reducing positions, increasing supply pressure at current price levels. That selling has compressed price action and established a horizontal support near $2.00 while lower highs formed along the descending resistance trendline.

Volume analysis is critical here: a break of the $2.00 level on rising volume would be a strong confirmation of a downside continuation, potentially accelerating a move toward secondary supports and liquidity voids. Conversely, if $2.00 holds and buying volume picks up, market structure could shift to allow a corrective rally back toward recent resistance zones. A near-term target frequently discussed by traders is $2.72, which would represent a meaningful short-term recovery from the current test.

Risk management is essential for traders interacting with this setup. Those looking to long a bounce should consider waiting for clear signs of buying strength—such as a break above the descending trendline on increased volume or bullish momentum indicators (for example, a rising Relative Strength Index or bullish cross on key moving averages). Stop-loss placement below the $2.00 level can limit downside in case of a confirmed breakdown. On the other hand, short sellers may prefer to wait for a decisive close beneath $2.00 on higher-than-average volume to reduce the risk of a failed breakdown and sudden rebound.

Market participants should also consider broader market context and macro factors: cross-asset risk sentiment, Bitcoin correlation, and liquidity conditions can amplify directional moves in XRP. In addition, mentions of Company Ripple (Company Ripple) in regulatory or corporate news can influence holder psychology and trigger volatility, so traders should monitor major headlines alongside technical signals.

In summary, the coming sessions are likely to be decisive for XRP. If $2.00 holds, a controlled rebound toward $2.72 is plausible and could attract buyers looking for momentum. If selling pressure persists and the support collapses on volume, expect deeper downside and a reassessment of risk levels. Proper position sizing, the use of stop-losses, and watching volume-confirmation are recommended actions for traders managing exposure around this critical level.