Market analyst Ali Martinez has identified a critical price level XRP must maintain to sustain its upward trajectory and potentially reach a new all-time high of $5. His latest analysis highlights a bearish technical pattern that could threaten the asset’s recovery if breached.
XRP Faces Pressure Amid Bearish Formation
XRP has recently experienced notable price declines, falling by over 18% since March 7. Over the past few days, the asset has recorded three consecutive bearish closes, placing it at risk of further downturns. At press time, XRP is trading at $2.05, reflecting a daily loss of 4.09%.
Despite this price decline, analysts are closely watching a crucial support level that could determine XRP’s next major move. Martinez emphasized that the cryptocurrency has formed a head-and-shoulders pattern on the daily timeframe, a formation often associated with trend reversals.
The Importance of the $2 Support Level
The head-and-shoulders structure consists of three peaks: a central high (head) between two smaller peaks (shoulders). Martinez noted that XRP’s left shoulder developed in December 2024 when the price surged to $2.9 following Donald Trump’s election victory. However, resistance at this level triggered a pullback to $2, which acted as the neckline of the pattern.
XRP then rebounded strongly, reaching $3.4 in January 2025, forming the head of the pattern. A subsequent correction followed, and earlier this month, XRP climbed to $3 after a market rally driven by a crypto reserve announcement, marking the right shoulder of the formation.
Currently, XRP is approaching the neckline at $2. Martinez warned that if the asset closes below this support, it would confirm the bearish head-and-shoulders pattern, potentially leading to further price declines. On the other hand, if the cryptocurrency finds support at this level and rebounds, it could invalidate the bearish outlook.
Potential Rally Toward $5
Martinez indicated that XRP could still achieve a significant rally if it manages to hold above the $2 neckline and recover from its current downtrend. If the asset successfully rebounds and surpasses the right shoulder resistance at $3, it could build momentum toward $5. This price target represents a new all-time high and a major milestone for XRP investors.
Market analyst CryptoLax also weighed in on XRP’s resilience compared to other altcoins. Despite the recent correction, XRP has still posted a 2.78% gain in 2025. In contrast, Ethereum (ETH) has dropped 38% year-to-date, while Solana (SOL) has fallen 33%.
CryptoLax highlighted the 200-day Exponential Moving Average (EMA) at $1.85 as another critical level for XRP. If the price fails to hold above $2, the 200-day EMA could serve as the next major support.
XRP’s price movement remains at a pivotal point, with the $2 neckline playing a crucial role in determining its next direction. A strong defense of this support could open the door for a rally toward $5, while a breakdown below it may trigger additional losses. Investors are closely monitoring this level as the asset navigates its latest market challenges.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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