Newsbit analyst sounds the alarm: ‘XRP below 2 dollars is very bad news’

Ripple (XRP) is trading below $2 again. This means that the price loses a crucial psychological level and is on very thin ice. A drop below $2 opens the door to a possible much deeper correction. Technical analyst Erik Juffermans from Newsbit shares his expectations.

XRP loses $2 mark

The four-hour chart below shows that the price has lost after the 2 dollar mark. This had been coming for a few days. The price traded in a narrowing zone between the horizontal border of $2 and a diagonal downward trend line. The weak broader market sentiment is now proving disastrous and the price fell rapidly from $2 to $1.85 yesterday.

The market, and also XRP, is now recovering somewhat. The price is now at $1.92 and appears to be on its way to $2 in the short term to retest this zone. The bulls want to see a reconquest of this frontier in the short term. This would invalidate the breakdown and be a strong signal for the bulls.

What does the past tell?

Before we look at what a possible range loss could mean, let’s take a look at what happened the previous times XRP fell below $2. In fact, we see that buyers have always been very eager below the $2 mark.

Over the past year, the price briefly fell below $2 several times. For example, we see on the graph several daily wicks that briefly dip below this limit and then rise again.

In total, the price has only traded below $2 for three full trading days in 2025: Two days in April and on November 22. If the price closes below $2 today, this would be the fourth day.

XRP on the brink of collapse

However, the weekly chart is more relevant here. Since XRP has been within its current range, a weekly candle has not opened or closed below $2. If XRP closes below $2 this week, it would be a first, and a very bearish signal.

In that case, there is very little support to be found below $2. A free fall towards the October 10 bottom at $1.25 is a possibility in that case. In fact, only a recapture of the $2 mark this week could put a stop to this bearish scenario.