XRP Price Braces for a “Death” Punch as Bulls and Bears Fight for Control at $2.06

XRP price has fallen nearly 24.5% over the past month, reaching a low of $2.06 after breaking down from a head and shoulders pattern. The price drop met its projected target, suggesting that the bearish phase could be ending. Buyers are gradually returning, and $2.06 is acting as a strong support level, placing XRP at a critical turning point where early rebound signals face rising technical risks.

XRP’s 12-hour chart confirms a clear breakdown from the head and shoulders formation, a classic bearish pattern. The neckline break on November 3 sent the price down to $2.06, aligning almost perfectly with the target of $2.09. This pattern completion often signals the end of a short-term correction, and recent data supports the idea that buyers are starting to re-enter the market.

According to Glassnode, XRP’s exchange net position change — which tracks token movements into and out of exchanges — has turned sharply negative since October 30, indicating substantial withdrawals. Exchange outflows jumped from 866 million XRP on October 30 to 1.25 billion XRP on November 4, a nearly 50% increase in just a few days. Typically, withdrawals signal accumulation rather than selling, with larger holders possibly using this post-drop phase to build positions.

The combination of a completed bearish pattern and significant exchange outflows suggests that $2.06 could serve as a solid base for XRP. However, the battle between bulls and bears is intensifying at this price level, with traders closely observing whether this support holds or gives way to further downside.

On the derivatives front, XRP still faces bearish pressure. Data from Coinglass highlights $262 million in short leverage between $2.31 and $2.63, compared to only $33 million in long positions. This imbalance could lead to a short squeeze, but it also reflects traders’ ongoing bets against the rebound. Additionally, Binance’s liquidation map shows aggressive long positions near $2.08 that could be forced to close, potentially adding temporary downside pressure.

A longer-term perspective adds caution: XRP’s 50-day Exponential Moving Average (EMA) is nearing its 200-day EMA, and a crossover would form a death cross, a bearish signal indicating extended weakness. XRP is also trading within a falling wedge, often a precursor to a bullish breakout but one that can lead to further lower lows before recovery. If the $2.06 support fails, XRP could retest $1.91 before attempting a rebound.

According to B2BinPay analysts, XRP is consolidating near the $2.25–$2.30 support, within a falling wedge inside a larger ascending channel. This pattern suggests volatility compression, a cooling phase often preceding a directional breakout. Analysts suggest that a decisive close above $2.55–$2.70 could trigger a rally towards $3.20–$3.40. However, for short-term sentiment to turn bullish, $2.45 and $2.55 need to be breached first, followed by ending the consolidation phase.