XRP, a popular cryptocurrency used for transactions on the XRP Ledger, is now trading close to $1.88. This comes after it fell below an important support level that had remained steady for most of the year. Support levels, in simple terms, are price points where a cryptocurrency might stop falling and bounce back. However, XRP breaking below this level is making traders worried. They are keeping a close eye on how the week’s final trading day will end.
Over the last seven days, Ripple’s XRP has dropped by about 8% in price. In the past 24 hours alone, the price has fallen by 2%. Meanwhile, daily trading volume, which shows how much XRP is being bought and sold, is over $3.4 billion—this is a lot of activity for the token.
What Happened to XRP’s Support Zone?
XRP recently broke below its multi-month support level for the first time this year. For months, this area had helped the price recover whenever it dipped. A few times earlier this year, the price even bounced back strongly in a pattern called a ‘V-shaped recovery,’ where a sharp drop quickly turns into a sharp rise. But now, XRP has fallen below $2 and stayed below for several days. This has raised concerns about a possible ‘technical breakdown,’ which means the price trend might be shifting negatively.
A user on social media platform X (formerly known as Twitter), who goes by ‘ChartNerd,’ highlighted this in a post. They wrote that XRP had fallen below its crucial support level and warned that if the price doesn’t rise back above this zone by the end of this week, XRP’s performance could get worse.
“$XRP is sweeping below its multi-month support trendline. It must reclaim this level by this week’s candle close or risk deeper water. Bulls have to step in soon.”
Meanwhile, technical charts show that moving averages—tools to analyze price trends—are now sloping downward. This suggests the market is showing weaker performance, with more sellers than buyers putting pressure on XRP’s price.
Will XRP Recover or Drop Further?
According to Peter Brandt, an experienced trader, XRP’s charts show a ‘double-top pattern.’ This is a technical analysis term and refers to when the price hits a high point twice, with a moderate drop in between, making it look like an ‘M’ on charts. It often signals that the market could turn bearish, which means a continued price drop.
“This is a potential double top. Sure, it may fail, and I will deal with this if it does,” said Brandt.
If XRP doesn’t climb back above the $2 mark soon, there’s a chance its price could drop further, possibly toward $1. Even so, markets don’t always follow expected patterns perfectly. The Relative Strength Index (RSI)—a measure traders use to see if a cryptocurrency might be overvalued or undervalued—is near 37 for XRP. Typically, RSI levels close to 30 can suggest the cryptocurrency might rise again soon. But as of now, there’s no confirmed sign of a recovery. Sentiment among traders remains mixed.
What History Says and The Role of ETFs
One interesting clue comes from XRP’s historical price movements. A cryptocurrency analyst known as ‘Steph Is Crypto’ pointed out that in previous market cycles (2017, 2021, and 2024), XRP often spent several weeks trading below its 50-week simple moving average before rebounding strongly. A simple moving average is a tool that shows average price trends over a specific time period. During those past cycles, XRP stayed below this average for around 49 to 84 days before prices shot up by 70% to 850%.
The analyst shared, “Right now, XRP is sitting inside the same historical window.” This means XRP might follow a similar pattern soon, though this is not guaranteed.
On the other hand, institutional investors—such as companies and large-scale traders—are showing more interest in XRP. Spot XRP ETFs, which are funds that track the price of XRP and allow people to invest in it more easily, have reported $19 million worth of new purchases. These ETFs first became available in the United States over a month ago, and they’ve seen steady inflows of funds ever since. While the growth pace of these purchases has slowed recently, the overall trend has been positive, suggesting prolonged interest in XRP despite price challenges.
For a stronger short-term recovery, the price of XRP would need to reclaim $2 and then rise further, breaking past the latest high of $2.27, a price it last touched in November. Meanwhile, if selling pressure continues, the next major support level is near $1, meaning the price could fall further before finding a solid ground.
The original story first appeared on CryptoPotato.