The cryptocurrency market is known for its ups and downs, but XRP’s struggle near the $2 mark has become a recurring challenge. This article dives into why XRP consistently faces resistance close to $2 and what needs to happen for a breakthrough.
Understanding XRP’s Repeated Failures Near $2
XRP has gained attention for its attempts to hit the $2 price level, often generating significant buzz within the crypto community. Despite a brief rally in early January 2026, where it surpassed $2, XRP could not maintain the momentum. The key challenge lies in overcoming a massive sell wall of 1.86 billion tokens just below the $2 threshold.
Key Market Signals and Price Movements
On the 12-hour chart, XRP currently trades around $1.87, reflecting a 4% dip over the last week. While there are signs of buying interest during price rallies, they often fail when hitting crucial resistance levels.
One critical technical indicator to watch is the 20-period Exponential Moving Average (EMA). Historically, when XRP reclaims the 20-EMA with strong buying volume, it indicates momentum toward a bullish trend. For instance, the January 1–6 rally saw XRP reclaim the 20-EMA, followed by a 28% rise in price. However, recent attempts to regain this trend have been met with selling pressure immediately after minor gains.
The Impact of the 1.86 Billion Sell Wall
Beyond technical indicators, the key obstacle for XRP lies in a supply cluster between $1.96 and $1.98. On-chain data shows this zone holds nearly 1.86 billion XRP, representing coins purchased within that price range. When XRP approaches this range, many investors sell to lock in profits or recover losses, creating a substantial resistance barrier.
While previous rallies succeeded in surpassing this zone, such as in early January, recent attempts have struggled. For example, XRP outflows from exchanges were far higher during the January rally compared to current levels, suggesting less conviction from buyers to absorb the sell wall.
Whale Activity and Market Sentiment
Whale investors (wallets holding between 10 million and 100 million XRP) have increased their holdings by 160 million XRP since January 21, signaling accumulation. However, this activity isn’t sufficient to break the large sell wall. Larger wallets (holding over 1 billion XRP) have shown minimal engagement, adding only 30 million XRP over the same period.
The market needs both whale-driven accumulation and robust retail sentiment to overcome the resistance near $2. Without these factors, XRP rallies will likely continue to face stiff barriers just below this level.
The Road Ahead for XRP
Breaking past the $2 barrier isn’t just about touching the price level—it’s about sustaining buying momentum strong enough to absorb the massive sell wall at $1.96–$1.98. With additional support from exchange outflows, stronger whale accumulation, and consistent buyer interest, XRP could eventually break free from this resistance.
For investors looking to stay ahead, consider monitoring on-chain metrics and exchange activity closely. Tools like Ledger Nano X for secure storage of XRP and other cryptocurrencies make managing your digital assets safer amid market fluctuations.
Final Thoughts
XRP’s journey toward breaking the $2 resistance is far from straightforward. While the market has shown glimpses of a possible rally, the 1.86 billion XRP sell wall remains a formidable obstacle. Patience and sustained buying pressure are key factors that will determine whether XRP can achieve its long-term price targets.
Stay updated on the latest cryptocurrency trends to make well-informed investment decisions. Always conduct thorough research or consult with a financial expert before diving into the volatile crypto space.
