XRP experienced a significant drop of 7.3% in the last 24 hours, now trading at $1.19. This decline has pushed the token below a crucial support level that had remained intact during recent market fluctuations, with a total decrease of 4.6% over the past week.
This drop coincided with a widespread sell-off in U.S. tech stocks, which has impacted the cryptocurrency market. Up until this week, XRP had shown resilience compared to many other cryptocurrencies and the S&P 500.
Support Level Breakdown at $1.21
The cryptocurrency fell below the $1.21 to $1.22 range that analysts had previously recognized as strong support. One analyst tracking XRP’s price noted that two technical indicators converged in that area: the 61.8% Fibonacci retracement of a prior price rally and the complete extension of its latest downturn.
Prior to this fall, the same outlook had suggested that a bottom had not been established yet. Recent recoveries had occurred in three-phase movements—a pattern typically indicating a potential correction instead of a sustained recovery.
Potential Downside for XRP
Charts reveal two key support levels beneath the current price point.
The first is at $1.10, aligning with the 78.6% Fibonacci retracement. This level is expected to hold firm if a broader bullish trend is to be maintained. A decisive breach below it would significantly diminish the prospects of a recovery.
The second critical level is the August swing low around $1. Any decline past this point would completely negate the existing bullish outlook and potentially lead to a more substantial downward trend.
Indicators of a Potential Recovery
On the rise, the previously supportive range at $1.21 to $1.22 may now function as resistance.
An increase beyond $1.35, the recent swing high, would be the first indication that a bottom might have formed. This would also require a continued five-leg rally on shorter timeframes, which has yet to materialize.
If that threshold is crossed, the next significant challenge will be at $1.65, clearing which would bring the $2.60 region into focus.
XRP Price Points to Monitor
- Resistance: $1.21 to $1.22, followed by $1.35 and $1.65
- Support: $1.10, then the August low around $1
- Upper target: approximately $2.60, should resistance be overcome
Market Outlook
XRP saw a minor increase of 0.8% in the last hour as buying interest emerged following the downturn. In the short term, the token’s trajectory seems closely tied to its ability to maintain the $1.10 level amid ongoing cautious investment sentiment in both stock and digital markets.
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