XRP encounters critical support test at $2 as traders debate manipulation claims following rapid price swings. Volume surges 182% while institutional interest builds through ETF products.
XRP faces critical pressure near the $2 level as traders monitor whether this key support will hold following recent price volatility. The digital asset has experienced turbulent movement over recent days, raising questions about market manipulation and institutional positioning.
According to ali_charts on X, the primary support zone for XRP remains at $2, with a secondary level at $1.20 if the current threshold fails. This technical assessment comes as the token navigates choppy waters following a challenging November that saw prices decline nearly 13%.
ChartNerdTA highlighted unusual price behavior on X, noting heavy manipulation patterns. The analyst observed XRP dropping from $2.20 to $1.90 before recovering back to $2.20 within less than three days—a classic V-shaped recovery that suggests coordinated trading activity rather than organic market movement.
The token recently broke above $2.10 resistance with significant volume increases, signaling potential institutional interest. Trading volume spiked 182% above average during key breakout windows, with network activity on the XRP Ledger reaching multi-year highs.
More than 40,000 Account Set operations were recorded, indicating increased participation across the network. Automated Market Maker positioning also accelerated as regulatory clarity continues to boost developer confidence and liquidity growth.
Technical Setup Points to Potential Breakout
The weekly Stochastic RSI recently generated a bullish crossover in oversold territory, a pattern that preceded major rallies in the past. Similar technical signals have historically led to substantial upward movements for XRP.
A realistic target for December sits at $2.60, with a clear breakout above this level serving as the first firm indication of a bullish shift . Both technical analysis and fundamental price targets converge around the $2.60-$2.61 zone.
The ascending triangle pattern that has been building over six months shows rising probability of continuation. Consecutive higher lows at $2.00, $2.04, and $2.155 strengthen this bullish structure, though traders remain cautious about overhead resistance.
Institutional demand through new ETF products has attracted approximately $640 million in inflows. Exchange reserves have fallen roughly 29% over the past month, with major platforms reporting lowest holdings in 12 months. Mixed Signals Create Uncertainty
Despite bullish technical indicators, on-chain data reveals challenges. Long-term holders in the 1-3 year cohort continue reducing positions, with supply clusters between $2.445 and $2.460 containing approximately 1.749 billion XRP.
The 1-2 year holder group dropped from 9.72% to 8.516% of total supply over the past month. The 2-3 year cohort fell from 14.80% to 14.251%. This selling pressure from established holders creates headwinds for upward price movement.
If the $2.00 support fails, potential downside targets sit near $1.77, while a confirmed breakout above resistance would open paths toward $2.65 TS2. The coming days will prove critical for determining XRP's near-term trajectory.
Momentum indicators suggest expanding bullish pressure rather than a short-lived spike. Combined with increasing network activity and record engagement, the technical setup presents both opportunities and risks for traders.
Sustained volume above 1 million units per hour signals genuine accumulation and reduces odds of pullback traps. However, if broader crypto markets experience downturns, XRP will likely follow suit, making the $2.00-$1.98 zone the structural support and invalidation level for the current breakout attempt.
3 Key Takeaways:
- XRP shows V-shaped recovery pattern between $1.90-$2.20, raising manipulation concerns among technical analysts
- Trading volume spiked 182% with $640M in institutional ETF inflows supporting bullish technical indicators
- Critical support at $2 must hold to prevent decline toward $1.77, while breakout targets $2.60-$2.65 zone
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XRP Manipulation Debate Heats Up at $2 Suppo
XRP faces manipulation claims as price swings between $1.90-$2.20. Key support at $2 tested amid 182% volume spike and institutional ETF inflows exceeding $640M