Ripple XRP Price Prediction: Why the $2 Breakout Has Traders Split Between a Surge and a Sharp Reversal

XRP has reclaimed the $2.00 (£1.49) level after a sharp, high-volume move that has reignited debate across the crypto market. The token linked to Ripple surged above a long-standing resistance zone, but rather than delivering clarity, the breakout has left traders divided over what comes next. For some, the move signals the start of a renewed rally. For others, it raises the risk of another false dawn.

XRP Breaks $2 on Strong Volume

XRP climbed from the high-$1.80s to around $2.02 in a single session (£1.50), marking an 8% gain over 24 hours. The rally gathered momentum as buyers forced a clean break through $1.96 (£1.46), a level that had repeatedly capped upside attempts in recent trading.

What set this move apart was volume. Trading activity surged well above recent averages as price pushed through resistance, suggesting participation from larger players rather than a thin, stop-driven spike. That dynamic has encouraged some traders to treat the move as a more credible breakout than previous attempts.

Why the $2 Level Matters So Much

The $2.00 mark is both a psychological barrier and a technical reference point for XRP price prediction models. Over recent weeks, rallies above $2.00 struggled to hold, often reversing quickly as sellers stepped in. Each failure reinforced caution around the level.

This time, XRP not only touched $2.00 but spent time trading above it, shifting attention away from the initial breakout and toward whether the market can defend this area. Sustained trade above $2.00 would mark a change in behaviour compared with earlier sessions.

The Real Battleground at $1.96

Despite the focus on $2.00, many traders view $1.96 as the real line in the sand. According to CoinDesk, that level previously acted as resistance and has now flipped into potential support. In technical terms, this 'flip' is often where breakouts are validated or rejected.

If XRP can hold above $1.96 on pullbacks, it strengthens the case that buyers are in control. A decisive move back below it, however, would suggest the breakout has failed, opening the door to a return toward prior trading ranges.

Signs Supporting a Bullish Continuation

Following the initial surge, XRP pulled back modestly from session highs near $2.03 (£1.51). Crucially, that retracement was limited to well under 1% and did not trigger heavy selling. Price action instead began to consolidate around the $2.01 to $2.03 zone.

For bullish traders, this pattern matters. Consolidation above former resistance is often seen as a sign of acceptance at higher levels. If this behaviour continues, attention could shift toward nearby resistance levels just above $2.03 as potential next targets.

The Bearish Case and Bull-Trap Fears

Not all traders are convinced. XRP has a recent history of 'breakouts without follow-through', where strong moves above resistance quickly faded. From this perspective, the risk is that the current rally proves to be another liquidity event rather than the start of a sustained trend.

A slip back below $2.00, followed by a failure to defend $1.96, would reinforce that view. In that scenario, sellers could regain control and push XRP back into the range it has struggled to escape.

What Traders Are Watching Next

For now, XRP price prediction hinges on a narrow set of levels. Holding above $2.00 keeps the bullish case alive, while $1.96 remains the critical support that must be defended. With early-January positioning still sensitive, how XRP behaves around these prices is likely to shape sentiment in the days ahead.

The breakout has answered one question by clearing resistance. Whether it can answer the next one, by holding those gains, is what has the market watching closely.