XRP's $2 Target Hinges on Holding Critical Support Band

XRP is attempting to turn its sharp correction into a launchpad for further growth. After increasing by 71.8% from $0.988 to $1.698, the token has dropped back by around 20%. This has left XRP sitting on a heavily traded support band that analysts believe will determine whether or not it reaches the $2 mark.

The setup is straightforward: buyers established a strong base just above $1.30, U.S. spot XRP ETFs continued to accumulate during the dip, and the short-term chart is coiling.

A critical area that could hold during the current correction is between $1.31 and $1.38, where more than 4.8 billion XRP were previously acquired. This cluster of holders is closer to breakeven than a windfall. If this band holds, it can absorb the correction.

On the other hand, if it fails, these same coins could flip into overhead supply on the way back up. The next liquidity shelves are at $1.60 (1.99 billion XRP), $1.68 (1.98 billion) and $1.86 (3.47 billion). A clean break above $1.86 would open a run toward $2.19, where another 3.12 billion XRP were previously traded.