XRP is on the verge of making history as it attempts to secure its first yearly close above $2, a level that has eluded the altcoin since its inception.
Despite recent consolidation and bearish pressures, analysts believe XRP’s potential milestone could set the stage for an explosive bull run.
The Struggle at $2
Historically, XRP has faced significant resistance around the $2 price point. In the 2017/2018 bull market, the altcoin soared by a staggering 33,066%, climbing from $0.00678 to a peak of $2.47.
However, it ended 2017 just shy of $2, closing at $1.99. The subsequent year was less kind to XRP, with an 82.49% drop to $0.3484 by the end of 2018.
In 2021, XRP attempted another rally, reaching $1.96 but failing to breach the $2 mark. It wasn’t until December 2024 that XRP reclaimed the $2 level, peaking at $2.9. Despite selling pressure, the altcoin has managed to stay above $2 as the year closes, sparking optimism among traders.
Why $2 Matters
Breaking and holding $2 is not just a psychological milestone—it’s a signal of market strength. A yearly close above this level would mark a turning point in XRP’s price history, potentially invalidating the bearish trends that have plagued it in the past.
Analyst Dom emphasized the significance of this potential close, noting that it could establish a foundation for further bullish moves.
Similarly, trader Steph highlighted the milestone’s importance, hinting at substantial returns for long-term holders if XRP maintains its upward trajectory.
Current Market Dynamics
While XRP’s performance in December 2024 has been impressive, it hasn’t been without challenges. The asset is under intense selling pressure, with bears attempting to push it below the critical $2 level. XRP currently trades at $2.06, testing the lower trendline of a bull flag on the daily chart.
Key Indicators to Watch:
- Bull Flag Pattern: A breach below the bull flag’s lower trendline could result in a drop below $2, jeopardizing the historic close.
- Inverted Hammer Candle: The monthly chart shows a green inverted hammer, signaling a potential bullish reversal. If XRP holds $2, the next candlestick could confirm a renewed uptrend.
| Year | Peak Price | Year-End Close | Yearly Gain/Loss |
|---|---|---|---|
| 2017 | $2.47 | $1.99 | +33,066% |
| 2018 | $0.774 | $0.3484 | -82.49% |
| 2021 | $1.96 | $1.34 | +73.3% |
| 2024 | $2.9 | $2.06 (current) | +5.47% (December) |
If XRP manages to secure this historic yearly close, it could mark the beginning of a new bullish chapter. Analysts believe a close above $2 could act as a springboard for higher targets, rekindling investor enthusiasm and bringing fresh capital into the market.
However, it’s crucial to monitor market dynamics closely. Continued bearish pressure or a break below $2 could delay XRP’s ascent, underscoring the importance of robust buyer support at current levels.
As the crypto community watches with bated breath, XRP’s performance in the final hours of 2024 could redefine its trajectory. Will it finally achieve its long-awaited $2 milestone? The stage is set, and the outcome could be historic.
