XRP has plummeted below two significant support levels, reaching $1.31, with $1.17 as the next crucial target amidst around $1 billion in liquidations across the market.
The ongoing decline in XRP, driven by persistent selling from holders, has raised concerns, with Claude AI suggesting there’s a 25% likelihood it could drop below $1 by mid-2027.
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XRP (CRYPTO:XRP) has dropped below the crucial range of $1.35 to $1.38 previously identified. Currently priced at $1.31, it has fallen by 5.0% in the last 24 hours and is down 6.3% over the past week.
This downturn reflects a broader trend affecting the cryptocurrency sector, with nearly $1 billion in liquidations occurring as both Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) experienced similar price declines. XRP is currently trading at about 64.1% lower than its peak value of $3.65.
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With XRP falling through this critical price zone and dipping past another support threshold, the pressing question remains: How low will XRP go?
Liquidation Concerns and Ongoing Selling Pressure on XRP
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Liquidations occur when exchanges compel traders to close their leveraged positions after prices fall past a defined threshold. This often happens when traders take out loans to purchase XRP beyond their financial capacity. If prices decline drastically, exchanges sell off these positions to cover the loans, potentially leading to further drops in price.
Once the liquidation-driven drops stabilize, prolonged selling from holders can still persist, extending the downward pressure until these holders cease selling.
At present, the underlying causes of the recent price drop are not entirely clear. However, the upcoming trading sessions should shed some light. Typically, liquidation drops can quickly recover after forced selling, while ongoing holder selling may continue to exert downward pressure.
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XRP’s Significant Support Ranges Between $1.38 and $1.17
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Support levels indicate price points where historically buyers have entered the market. While these levels serve as indicators for potential price stabilization, they are not guaranteed to hold, especially during liquidation events that can cause sharp price declines.
Previously, the primary point of interest was between $1.35 and $1.38, which XRP has now broken. A rebound would necessitate XRP to reclaim this range to halt the downward movement. The following key price level is $1.32, which has also been broken.
Below the current price is $1.17, the low recorded in August 2026. With no established support between $1.32 and $1.17, another decline below $1.32 may easily steer XRP towards $1.17.
XRP Funds Experience Inflows, Yet the Token Struggles
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In a slightly encouraging development, XRP fund holders witnessed a small inflow of approximately $740,000 on October 14, making XRP the only major coin to gather funds during that session, according to SoSoValue. Although this amount is modest for an asset valued around $82.6 billion, it still reflects investor interest in light of XRP’s overall weak performance relative to the market.
Over the past month, XRP has faced a 5.6% decline, ranking it among the lowest performers among the 26 cryptocurrencies monitored. Its current value has fallen below initial investment levels for many buyers. This, coupled with a month filled with losses, suggests persistent selling pressure from holders rather than a sudden influx of liquidations.
In an analysis released on October 14, Claude, an AI model, projected a 25% chance of XRP dropping below $1 by June 30, 2027. This forecast represents one viewpoint, not an absolute prediction.
What’s Next for XRP? Potential Price Movements Explained
It appears likely that XRP will test its August low of $1.17 prior to any recovery toward $1.38. The ongoing downward pressure over the past month suggests consistent selling activity, which predates the recent wave of liquidations, while a single inflow is insufficient to counteract this trend. To reverse the current decline, XRP must stabilize above $1.32 after the liquidation selling ends and aim to close a day above $1.38, the upper limit of the zone it has lost.
A close above $1.38 could indicate the liquidation pressure has subsided, whereas falling below $1.17 could lead to further risks, bringing the earlier estimate of a potential drop below $1 into focus. Thus, the upcoming daily closes—above $1.38 or below $1.17—will be critical in shaping the future movement of XRP’s price.
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