5 Minutes
XRP Price Tests Crucial Support After Market Pullback
XRP markets traded close to a key support zone this week as the token attempted to recover from a fresh market correction. Data from major venues shows XRP changing hands around $1.91–$1.93, with Binance spot pairs near $1.93 and a CoinGecko composite price printing roughly $1.91 on about $2.8 billion in daily volume.
Despite ongoing institutional interest, Monday’s session pushed XRP below a one‑year range low before the price stabilized at a historically important support band. That level has acted as a springboard for rebounds since the November 2024 breakout, underscoring its significance for traders watching the 200‑day moving average (200‑day MA) and longer timeframes.
What the recent slide means
The mid‑week dip—about a 6% move on Monday—saw XRP briefly lose the lower boundary of the year‑long range. Analyst commentary is mixed: some traders warn that a sustained daily close below this range low could confirm a high‑timeframe breakdown, opening the door to a larger retracement toward the 200‑day MA. Others point to technical signs of bullish divergence that may support a renewed accumulation phase similar to 2023–2024.
Market strategist Ali Martinez highlighted the risk scenario, noting that failure to reclaim the lower range on a daily close could lead to roughly a 50% decline toward deeper support levels last tested more than a year ago. In contrast, trader Niels flagged a daily bullish divergence that suggests upside potential if the support zone holds and resistance is cleared in the coming weeks
Technical Patterns: Breakdown vs. Accumulation
Analyst Cheds Trading warned of a potential high‑timeframe rounding top or double top in XRP’s price structure. In that view, a confirmed double top—validated by a break of the neckline—could produce an "M" formation, with a measured move that targets lower support near the 200‑day MA and substantially lower price ranges.
Conversely, proponents of the bullish case argue XRP is repeating an accumulation pattern seen across late 2023 and 2024. If this consolidation persists and the token holds the current support, the market could enter a markup phase leading to a breakout between now and late 2026. That bullish thesis rests on institutional demand, on‑chain fundamentals, and the potential for renewed momentum if macro conditions turn favorable.
Short‑term market context
Year‑to‑date XRP remains below the early December reference near $2.20, representing a drawdown of roughly 10–15% into the current $1.9 area. Even so, the token sits far above the $0.32 lows of mid‑2024 and remains approximately 45% below its all‑time high of $3.65. The recent 24‑hour uptick—about +3–4% across major venues—should be viewed as a short‑term bounce inside a broader consolidation that retraced part of the 2024–2025 advance.
Traders should monitor key levels: the current support band that has produced repeated rebounds since November 2024, the lower boundary of the one‑year range, and the 200‑day MA as the primary trend filter. Volume behavior on exchanges like Binance and aggregated feeds such as CoinGecko will also be critical for validating any breakout or breakdown scenario.
Risk management and trading takeaways
For traders and investors focused on XRP, several practical steps are prudent: set explicit stop levels to manage downside risk if the range low fails; watch for confirmation of bullish divergence on daily and weekly timeframes; and track institutional flows and on‑chain metrics that could signal renewed accumulation. Whether XRP resumes an upward trend or experiences a deeper correction will hinge on the token’s ability to secure a daily close above the range low and maintain support above the 200‑day MA.
In short, XRP is at a technical crossroads. A confirmed break below the long‑running support could trigger a more significant retracement, while sustained defense of the zone would validate the bullish accumulation narrative and keep the outlook constructive for a potential breakout in the medium term.
Source: crypto
Comments
datapulse
Pretty sure this is just consolidation, hold the line, 200 day MA matters a lot. short term chop then maybe a slow build up — or quick dump, who knows lol
fxHunt
Wait so a daily close below that range really means a 50% drop? sounds extreme, where's the macro trigger, liquidity? feels like FUD unless flows prove it.
Leave a Comment