XRP may decline steeply to levels last seen in November 2024 if it fails to sustain current levels and corrects below the psychological $2 price mark.

The cryptocurrency market has continued to grapple uncertainty as the FOMC meeting draws closer, with XRP joining the trend. For perspective, the digital asset surged nearly 2% on Monday, only to relinquish all its gains the following day.

While these unclear price actions continue, an analytical insight has identified the levels XRP needs to hold to sustain bullish traction. Prominent market watcher Ali Martinez has highlighted the only key support in the asset’s path to a 29% decline to $1.60.

No Significant Support Below $2

Martinez noted in a tweet today that XRP could be preparing for a substantial price development. He insinuated that the direction could be downward and warned of a free fall to $1.60 if the $2 support failed to cushion further retracement.

Meanwhile, the analyst based this disposition on the lack of pronounced support below the psychological $2 mark. An accompanying chart shows an air gap below $2, with the next crucial demand wall at $1.63.

Martinez highlighted the possible support area using the UTXO Realized Price Distribution (URPD) ATH-Partitioned indicator. For the uninitiated, this metric tracks the number of XRP tokens users moved at a particular price, providing insight into the average cost of existing unspent transaction outputs (UTXOs).

This divides XRP’s price ranges into equal partitions between $0 and its all-time high, highlighting the amount of asset acquired at a particular price. This way, zones with higher and lower demands are identified.

At $2.38, market participants moved 2.39 billion XRP, serving as a substantial support area for the asset. However, below $2, the URPD dropped significantly, suggesting little or no significant support around the region until $1.63, where users moved 1.13 billion XRP.

Notably, this analysis aligns with Martinez’s earlier assertion that a drop below $2 could spur a capitulation to $1.27, citing a forming head and shoulder price pattern.

Analyst Says $1.60 Too Steep

Meanwhile, CryptoLax has insisted that XRP to $1.60 is “quite steep.” He highlighted that the token could face resistance as it trends towards a supply zone in the 4-hour timeframe.

However, his commentary suggested that a rejection from the zone would push XRP to $2 in the worst-case scenario. An accompanying chart shows that the analyst expects the asset to hold the support trendline, which has served as a buffer to the asset’s recent downtrends.

In the meantime, XRP trades at $2.2992, up less than 1% in the past 24 hours.