XRP News: XRP Price Teeters at $2 as Investor Demand Wanes — Is a Breakdown Imminent?

XRP’s once-explosive bull market momentum is fading, with long-term holders and newer investors alike reducing exposure as confidence weakens. After a 600% rally between October 2024 and January 2025, XRP now finds itself at a critical support level, with key metrics flashing warning signs.Retail-Driven Rally Faces Reality CheckXRP surged to a 7-year high earlier this year, riding a wave of optimism fueled by pro-crypto political narratives and legal wins for Ripple. During the rally:Daily active addresses rose by 490%.Realized cap grew from $30.1B to $64.2B, with 62.8% held by new investors (less than six months).Retail traders dominated the influx, betting big on short-term momentum.However, since late February 2025, that narrative has shifted. Capital inflows have stalled, and realized profits have turned to losses, eroding sentiment and risk appetite.“Retail investor confidence in XRP may be slipping,” said Glassnode analysts, citing a steep decline in the realized profit/loss ratio.Whales Are Quietly ExitingOn-chain data shows that over $1 billion in XRP has been offloaded by whale addresses in the past two weeks at an average price of $2.10, signaling strategic exit behavior from large holders. This trend aligns with declining volume and bearish sentiment across altcoins.Will $2 Support Hold?The $2 level has held as support multiple times over the past month, but each retest adds pressure. Analysts warn that if XRP closes below this mark, a deeper correction toward $1.70–$1.80 (200-day moving average) or even $1.07 — as suggested by the broader head-and-shoulders pattern — is on the table.Yet, short-term charts show signs of a potential relief rally:Bullish divergence appears on the 1-hour and 4-hour RSI indicators.A fair value gap between $2.08 and $2.13 could act as a magnet for price action during any oversold bounce, according to Cointelegraph.