XRP’s ongoing sell-off is exposing the asset to a possible retest of the $2 support zone, as hinted by technical formations. Notably, at the time of reporting, the impact of the broader market sell-off had plunged XRP into daily losses of over 3%. Over the past week, the asset has dropped 4.5%, settling at $2.31. XRP seven-day price chart. Source: Finbold Now, XRP’s one-hour chart is forming a bearish head-and-shoulders pattern, with a potential breakdown targeting the $2 level if current support fails, as prominent cryptocurrency trading expert Ali Martinez observed in an X post on May 19. According to the analysis, the pattern’s neckline rests near the $2.30 support zone, which XRP is now testing. XRP price analysis chart. Source: TradingView/Ali_charts The head-and-shoulders pattern is widely regarded as a reversal signal, often marking the end of a bullish trend. In XRP’s case, the “left shoulder,” “head,” and “right shoulder” have formed, followed by a neckline support zone. A break below this zone would confirm the bearish setup and could send prices tumbling toward $2. XRP’s crucial support zone Overall, XRP is teetering at a crucial technical level, with the $2.30 support, corresponding to the 0.888 Fibonacci retracement , acting as a potential pivot point for its next major move. In this case, pro-XRP analyst Egrag Crypto highlighted the level’s importance in a May 19 X post , calling it a make-or-break moment for the asset. XRP price analysis chart. Source: TradingView A strong hold above $2.30 could pave the way for a bullish push toward $2.619, followed by a retest of the psychological resistance at $3.10. The analyst’s ultimate upside target is $3.39. However, failure to maintain this level risks a deeper correction, with potential support near $1.61 and $1.20, based on key Fibonacci levels. XRP’s short-term relief There is still room for optimism in the short term. XRP is trading above its 50-day and 200-day simple moving averages ( MA ), priced at $2.21 and $1.90, respectively, typically considered a bullish technical signal. Yet, sentiment remains cautious around the asset amid bullish developments. For instance, despite the CME Group’s planned launch of XRP futures on Monday, a major step toward institutional adoption, XRP has shown a muted reaction. To this end, the broader crypto momentum may be needed to kickstart any sustained rally. Adding to the uncertainty, Ripple is set to unlock one billion XRP in the coming days, a scheduled event that has historically caused minimal disruption but could introduce volatility, especially with the asset already struggling to hold the $2.50 level. For now, XRP appears to be moving in step with the broader market, with unresolved factors like the ongoing SEC v. Ripple case offering little price impact. As crypto trader Scott Melker noted , XRP may need a fresh narrative to become the market’s next breakout performer. Featured image via Shutterstock The post XRP flashes crash signal with drop to $2 in sight appeared first on Finbold .
