Here is The Line XRP Must Hold To Avoid Falling To $1.27

Ali Martinez, a notable market veteran, has suggested that XRP is now in a critical position, identifying the level it needs to hold to ward off the bears.

Notably, XRP has been a victim of a broader market-wide turbulence, triggered by the Bitcoin (BTC) struggles around $80,000. As this bearish price action prevailed, XRP suffered a huge blow yesterday. The altcoin slumped to a low of $1.99, giving up the pivotal $2 level but eventually closed the day above it amid a mild recovery. 

XRP in a Critical Condition

Earlier this morning, XRP dropped again below $2, reaching a floor of $1.89 before rebounding to recover $2. Amid this battle, Martinez emphasized in his recent analysis that XRP is currently trading within a critical level, as he shared data from a 12-hour chart.

He called attention to a bearish head and shoulders structure, which could trigger a deeper price slump for XRP. For the uninitiated, a head and shoulders structure typically contains two shoulders representing lower peaks and a middle head marking a higher peak.

The pattern usually results in a bearish reversal when the asset breaks below the neckline after forming the lower shoulder. Martinez’s chart shows that XRP formed the left shoulder when it hit a peak of $2.9 in early December 2024.

After this top, the asset corrected for a few days and then recovered to reach a higher peak of $3.4 in January 2025. This marked the formation of the head. Meanwhile, the right shoulder formed when XRP pulled back from the $3.4 high, corrected for a few weeks and then hit another lower peak of $3 earlier this month.

With XRP now correcting from this right shoulder peak, the neckline of the head and shoulders structure rests at $2. Now, the bears are constantly flirting with the $2 mark, as XRP struggles to maintain a position above it. As a result, Martinez warns that XRP is in a critical condition.

XRP Must Maintain $2

However, for the head and shoulders structure to be confirmed, the bears must not only drop below $2 but secure a candlestick close below it. According to Martinez, if this occurs, it would lead to a shift in XRP’s macro trend from bullish to bearish. His chart sees a potential drop below $1.27.

Notably, Dom, an order book expert, also called attention to this situation. Dom stressed that after XRP failed to regain control of the $2.2 area, it had entered a dangerous region. He noted that a drop below $2 could lead to steeper declines, with the $1.6 mark possibly a bearish target.

Currently, XRP changes hands at $2.1, up 4.28% this morning, but down 1.96% in March. According to Dom, the market could garner some hope if Bitcoin recovers to where it needs to be and XRP maintains $2. However, he noted that this is just wishful thinking.