XRP investors are keeping an eye on a crucial price level this week. Bitcoin has managed to reclaim above $100,00 and Ethereum is over $2300.

XRP has recorded a modest increase as well but still hovers at the lower part of the $2 price range.

XRP price has been holding above a crucial level this week, which could be setting the stage for further gains in the period ahead.

Crucial Level For XRP Price

As Bitcoin price tries to stay above $100,000 and Ethereum is over $2,300 again, altcoins have also recorded some modest gains.

While XRP has seen a decent increase from the lower part of the $1 price range, it is still hovering at the lower part of the $2 price range.

From a chart by a market observer who goes by the name of “Guy on the Earth,” XRP has managed to hold above a persistent horizontal trendline at $2.

This trendline becomes more apparent when compared to the failed attempts by XRP to break above $2 in the past.

Back in March 2017, XRP burst in price, going from $0.0055 to a high of $3.80. After peaking at that all-time high in January 2018, it fell hard.

Initially, XRP broke through $2 on December 30, 2017. However, by January 13, 2018, two weeks later, it dipped below again. This initial test revealed that the $2 level was more resistance than support for new buyers.

As such, it’s no surprise that XRP attempted to break past that level once more in April 2021, when it peaked at $1.96 but could not make further progress.

From January 2018 all the way up to December 2024, the $2 line acted as a ceiling. Traders could see it capping price action for almost seven years. Every time XRP hit against that wall, it fell back into the $1 zone.

Finally, XRP cleared the $2 trendline in December 2024, when broader markets bounced on a bullish wave. Since then, the coin has stayed above this line for almost five months.

This is the longest period ever that XRP has managed to hold above this level. While its bounce hasn’t been as fast as Bitcoin or Ethereum’s, holding this level for longer than ever feels different.

"This time is different," the observer stated. "If we close below $1.80, some will declare the setup invalid. For the moment, many view this extension above $2 as a signal that XRP’s next act could be better than its previous one."

Pointing out his own predictions, the analyst stated that he previously advised traders to sell some XRP at $3.30. His next goal for the altcoin rests at $5.30, where he advises traders to take profit again.

However, he predicts that XRP could go as high as $8.88 before running out of steam. At that point, he thinks the coin will return to $2 again.

The trend in prices is just half the story.

Indeed, Ripple’s legal battle against the SEC and regulatory updates for crypto would do the trick. On-chain metrics such as active accounts or large transfers would put some perspective behind that $2 hold.

Traders should also pay attention to sudden spikes in daily volume around this line.

If XRP drops below $1.80 on a daily chart, some analysts will declare the setup invalid.

For the moment, however, many view this extension above $2 as a signal that XRP’s next act could be better than its previous one.

News data source: kdj.com

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