Is XRP About to Drop Below 2 USD? Here Is What Investors Are Saying

XRP is fluctuating around the 2.00 USD level, with this altcoin holding above 2.08 USD at the time of writing. However, the increasing volatility in its price action raises concerns that it may slide below the important 2 USD level. Investor sentiment may determine whether XRP can maintain its current level or will experience a bearish trend. Holders of XRP to the rescue XRP has seen a significant increase in the number of active addresses recently, a sign of increased volatility. History shows that an increase in the number of active addresses often accompanies significant price fluctuations. As the number of active addresses rises, the price action of XRP becomes more unpredictable, increasing the likelihood of a strong move in either direction. This increase in volatility reflects the uncertainty surrounding the future of XRP, especially as this altcoin is fluctuating near a key support level. If the trend of active addresses continues to rise, the price of XRP may experience significant changes depending on buying or selling pressure.

The Liveliness index of XRP is currently falling steadily, indicating that long-term investors (LTHs) are increasingly accumulating rather than selling. At a six-month low, this index shows that LTHs believe in the long-term potential of XRP, creating a price-stabilizing effect. As LTHs hold their positions, this support can help ease extreme volatility. The accumulation of LTHs shows that investors are not easily influenced by short-term price fluctuations. This investment behavior is beneficial for XRP, as it reflects confidence in the future of this altcoin.

XRP Price Needs to Find Stability As of the time of writing, the price of XRP is 2.09 USD, holding above the local support level of 2.08 USD. Although this altcoin has maintained this level, it is still susceptible to the ongoing market volatility. If the bearish momentum increases, XRP may slide below 2.08 USD, triggering the next bearish move. If broader market conditions weaken, the price of XRP could fall to the range of 2.02 USD or even drop to the important level of 2.00 USD. Falling below 2.00 USD could trigger panic selling, as this is a psychological support point for many investors. This could exacerbate losses and create bearish pressure.

However, a bounce from the support level of 2.08 USD could provide the necessary momentum for XRP to rise back to the level of 2.13 USD. The presence of support from LTH may play an important role in stabilizing the price and encouraging recovery. If XRP can turn 2.13 USD into support, it could nullify the bearish outlook and move towards the level of 2.23 USD.