XRP recovery was rejected; can it avoid falling below $2?

XRP price continues to struggle as the overall crypto market situation deteriorates. The Token has been under selling pressure for several days, repeatedly failing to recover.

Despite continuous selling pressure, XRP investors are actively accumulating shares with the goal of defending key support levels and limiting downside risk.

XRP holders are changing their minds.

Current market sentiment for XRP remains weak, as liquidation data indicates a heightened risk of a price drop. According to the liquidation heat map, traders with Longing XRP positions face significant risk if the price approaches $2.00. There is a dense area of ​​Longing positions slated for liquidation around $2.02, estimated to be worth $25.4 million in leveraged positions.

If the price enters this zone, buying pressure can be wiped out very quickly. This will lead to liquidated orders, further increasing selling pressure and attracting more investors to place Short positions.

This shift could lead to a more pronounced negative market sentiment, especially among Derivative traders who remained optimistic despite XRP prolonged price decline and weakening short-term recovery momentum.

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Despite negative short-term factors, macroeconomic indicators suggest improving buying demand. Data on Token position changes on exchanges shows many green bars appearing, reflecting net withdrawals of XRP from exchanges. This trend typically indicates increased buying pressure, as investors move XRP to personal wallets instead of holding it to prepare for sale.

This is a notable shift from three months ago, when selling pressure completely dominated the XRP price . If this accumulation continues, it could help stabilize the XRP price if the overall market doesn't worsen.

The shift from distribution to accumulation increases the potential for a medium-term recovery for XRP.

XRP price may be safe from further declines.

At the time of writing, XRP is trading around $2.06, maintaining a downtrend that has lasted for over 10 days. The Token is still holding above the $2.03 support level, a crucial area for short-term market structure and trader sentiment.

This support level has been tested several times in recent weeks, indicating that many investors are willing to buy at this price point. The accumulation trend is expected to continue protecting $2.03, even if XRP consolidates and trades sideways around this area.

If XRP successfully bounces from this support, the price could surpass $2.10, breaking the downtrend and regaining upward momentum.

However, if the overall market continues to weaken, any upward price movements could be overwhelmed. If XRP price drops sharply below $2.03, it is highly likely to continue falling below $2.00.

When this situation occurs, the bullish outlook will be rejected, approximately $25 million worth of Longing positions could be liquidated, causing XRP price to plummet to the $1.93 region due to increased selling pressure.