XRP tests key support level, breakout could open path to $2.19

XRP is at a critical juncture after its earlier rally of more than 71% turned into a sharp correction. The price is currently trading around $1.39, just above a zone where billions of XRP previously changed hands. According to analyst Ali Martinez, holding this support could prove important for a renewed move higher. On the upside, several resistance levels await, with $2.19 a possible price target.

Billions of XRP bought around current price

XRP rose from $988 to $1,698 during the recent rally, a gain of roughly 71.8%. From that local top, however, a correction of around 20% has followed, wiping out a sizeable portion of the advance.

The price currently stands at $1.39. XRP is down 2.23% over the past 24 hours, while the seven-day loss comes in at 6.60%. Daily trading volume amounts to approximately $1.70 billion.

With around 63 billion XRP in circulation, total market capitalisation comes to roughly $87.52 billion.

According to Martinez, one of the most important support zones lies between $1.35 and $1.38. URPD data shows that around 3.2 billion XRP have been traded near these prices. That suggests many market participants built positions here, allowing this zone to function as a key demand area.

XRP faces multiple resistance levels

If the zone between $1.35 and $1.38 holds, attention shifts to the resistance around $1.60, where roughly 1.99 billion XRP previously changed hands.

Above that, $1.68 presents another solid barrier, with around 1.98 billion XRP tied to that level. Next comes $1.86, where data indicates around 3.47 billion XRP were traded.

That final zone in particular could prove important for the broader price picture. Investors who entered near these levels may decide to sell their positions once the price returns to around their purchase cost, which could add to selling pressure.

Break above $1.86 brings $2.19 into view

Martinez therefore regards $1.86 as a crucial threshold. If XRP breaks convincingly above this level, his analysis suggests room could open up for a move towards $2.19.

From the current price of $1.39, a rise to $2.19 would represent a gain of around 58%. Around $2.19, however, there is again a large amount of previously traded XRP, with the analysis pointing to roughly 3.12 billion tokens.

For now, the focus is firmly on the downside. As long as XRP holds the key demand zone between $1.35 and $1.38, a recovery towards the higher resistance levels remains possible. A clear break below this zone, however, would further weaken the technical picture.