XRP's $2.10–$2.20 Price Zone: A Strategic Buy Zone for Long-Term Investors?

The XRP price zone of $2.10–$2.20 has emerged as a focal point for traders and institutional observers, with technical indicators and whale activity suggesting a potential inflection point for the asset. This range, which straddles critical Fibonacci retracement levels and key trend-line breaks, represents a confluence of bearish and bullish forces. For long-term investors, the question is whether this zone offers a strategic entry point or a trap for those betting on a reversal.

Technical Analysis: A Bearish Foundation with Oversold Bounce Potential

XRP's recent breakdown below $2.28 triggered a 7.5% price drop, with trading volume spiking to 137.4 million as institutional selling pressure intensified, according to a Coinedition analysis. While the broader trend remains bearish-exemplified by the formation of a death cross (50-day SMA below 200-day SMA)-the RSI has entered oversold territory, hinting at a possible rebound if sentiment stabilizes, according to the Coinedition analysis.

Fibonacci retracement levels add nuance to this analysis. The $2.23 consolidation price sits just above the 38.2% retracement level at $2.16, a pivotal support zone for mid-term bullish potential, according to a Coinotag report. Deeper support levels at $1.94 and $1.58 loom if selling pressure persists, while resistance clusters at $2.36 and $2.53 align with the 200 EMA and could catalyze a bullish extension toward $3.00, according to the Coinotag report. However, a breakdown below $2.10 could accelerate the price toward $1.80–$1.90, exacerbated by weak liquidity in that range, according to the Coinedition analysis.

Whale Activity: Accumulation Amid Volatility

Whale behavior provides a counter-narrative to the technical bearishness. In recent weeks, large holders have aggressively accumulated XRP, with addresses holding 10 million to 100 million tokens acquiring over 190 million tokens valued at $505 million, according to a Yahoo Finance report. The number of XRP whale wallets-those holding at least 10,000 XRP-has hit an all-time high of 317,500, signaling growing conviction in the asset's long-term value, according to the Yahoo Finance report.

This accumulation is supported by on-chain metrics. The Chaikin Money Flow (CMF) has reached a three-month high, reflecting increased inflows and investor participation, according to the Yahoo Finance report. Additionally, the supply of XRP on centralized exchanges has plummeted to 3.9% from 6.12% in the past 30 days, reducing immediate selling pressure and enhancing upside potential, according to the Yahoo Finance report. These dynamics suggest that while short-term volatility persists, whales are positioning for a potential rebound.

Strategic Implications for Long-Term Investors

For investors considering entry into XRP, the $2.10–$2.20 zone presents a high-risk, high-reward scenario. If the $2.20 support holds and whale activity continues, a rebound toward $2.35–$2.50 is plausible, with the 200-day SMA at $2.59 acting as a critical breakout threshold, according to the Yahoo Finance report. A successful breakout could trigger a V-shaped recovery, targeting $3.00 as a long-term benchmark, according to the Yahoo Finance report.

However, caution is warranted. A breakdown below $2.10 could initiate a deeper correction, testing liquidity at $1.75 and beyond. Investors must weigh the risks of prolonged bearish momentum against the potential for a whale-driven rebound. Position sizing and stop-loss strategies should reflect the volatile nature of this zone.

Conclusion: A Calculated Bet on Resilience

XRP's $2.10–$2.20 price zone is a battleground of technical and fundamental forces. While bearish indicators like the death cross and weak liquidity pose risks, Fibonacci retracement levels and whale accumulation suggest a potential floor for the asset. For long-term investors with a risk appetite for volatility, this zone could represent a strategic entry point-if they're prepared to weather the storm until the bulls take control.