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$XRP has recently reversed its upward move, returning back to the red territory amid the broad crypto market slowdown.
Following this negative price trend, $XRP is at risk of losing the crucial $2 support level, posing the asset for a deeper decline that could see $XRP retest levels not seen in months, according to recent data shared by popular crypto analyst Ali Martinez.
$XRP risks retesting $1.20
Following $XRP’s indecisive move, the analyst has warned that the leading altcoin could face a heavy price correction that could trigger a massive decline to $1.20 if it fails to hold support about $2.
Ali issued the warning following the recent price weakness that has seen $XRP steadily face multiple corrections after failing to reclaim key resistance levels since the massive crash witnessed Oct. 10.
Furthermore, the analyst shared a chart revealing that $XRP has formed a major support at $2, this marks the level where buyers have repeatedly stepped in to prevent deeper losses.
While the chart further revealed $XRP’s latest price action, which saw the asset consolidating just above the $2 level, it has raised concerns that selling pressure may be building.
As such, if $XRP fails to hold momentum and break the $2 support, it could trigger a massive price decline of about 40%, retesting $1.20 again.
While $XRP is showing no signs of a rapid resurgence soon, it appears that the asset may defy the bullish December trends witnessed in the past two years. Currently, the asset has recorded a nearly 6% decline for the month.
Nonetheless, the analyst further revealed that there is a chance of saving the situation, noting that a successful defense of the $2 zone could allow $XRP to stabilize and attempt a recovery toward the $2.40-$2.60 range.