Ripple’s XRP coin, the fourth largest digital asset across the globe, just lost its grip on the $2 psychological level amidst a 3% market downturn. On Tuesday, XRP’s price moves resembled the broader sentiment, as both Bitcoin (BTC) & Ethereum (ETH) also lost around 3% to retest lower support boundaries at $90K & $3K, respectively.
$2.40 Rejection Poses Big Psychological Challenges
For XRP, the main issue is a rejection of the $2.40 resistance level that occurred last week. Since then, the OG altcoin dropped another 20% to trade at $1.92 right now, finding foot after bouncing off $1.85 in the morning. However, the broader implications are not so bright – new data shows that short-term holders are buying below the long-term holder’s cost basis.
Meanwhile, the on-chain analysts at Glassnode are sounding the alarm about the current market structure closely resembling that of 2022. “As this structure persists, psychological pressure on top buyers continues to build over time”, – stated the research-previewing message on X.
Why’s The Ghost Of 2022 Haunting XRP’s Price?
Surely, 2022 was in no way a good year for the industry in terms of growth or stability – the double-trouble downfall of both Terra Luna ecosystem & the FTX exchange, then super-popular in the States, caused caused a superstorm of liquidations, lawsuits & eventually a 25-year prison sentence for FTX’s mastermind Samuel Bankman-Fried.
Then, XRP’s price was trading well below the lower $1 support level. When the back-to-back industry scandals hit, the OG altcoin fell to as low as $0.30. For this reason, many analysts are assessing the odds of XRP plunging below $1 again if the $1.80 support gets lost & the $2 psychological territory isn’t reclaimed.
Fast forward to 2025, XRP’s price hovering below $2 would almost instantly result in investors selling at a deficit, Glassnode acknowledged. In that case, XRP investors tend to realize from $0.6 billion to $1.2 billion in weekly losses, dramatically influencing spending behavior.
On the other hand, times are very different in 2026, as Ripple frontruns the blockchain technology sector in terms of compliance.
As the industry is divided into two camps whether this current Clarity Act is actually good for crypto, Ripple’s crew stands out with a clear, favorable stance.
The acquisition of numerous infrastructure providers, cooperation with the SEC’s Crypto Task Force & a fully-regulated stablecoin launch could bring unmatched liquidity to the XRP Ledger.
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People Also Ask:
Heavy selling hits the whole crypto market. Geopolitical fears and risk-off mood wipe billions off total cap. XRP breaks key $2.05 support, so leveraged longs get forced out fast — that pushes price lower.
Mostly the full market suffers. But XRP gets extra hits: some whales move tokens to exchanges (adds sell supply), medium-term holders sell at breakeven, and recent rally attempts fail, so people take profits.
Yes, a bit. Downside volume slows at support levels. On-chain data shows seller exhaustion — fewer people want to sell more. Strong hands absorb supply. But price must reclaim $2+ to really flip bullish.
