Key Insights:
XRP fell 6% on Monday, breaching its one-year range before stabilizing at key support levels.
Analysts warn a breakdown could lead to a 50% drop, sending XRP toward its 200-day moving average.
Despite recent losses, XRP remains well above mid-2024 lows and is testing a support zone for potential recovery.
XRP has recently encountered significant price fluctuations, testing critical support levels after a sharp market correction earlier this week. The cryptocurrency, which had been trading near its one-year range, saw a 6% dip on Monday, breaching its key support zone before stabilizing. Despite ongoing institutional interest, XRP’s recent performance has drawn the attention of market analysts, with some warning of potential risks ahead.
On Monday, XRP fell below a crucial support level that had held steady since its breakout in November 2024. The move left the token testing a support zone that has historically prompted rebounds. However, analysts like Ali Martinez and Cheds have cautioned that losing this support could signal a deeper downturn for XRP, potentially sending the cryptocurrency toward its 200-day moving average, a price range not seen for over a year.
Martinez highlighted that the failure to secure a daily close above this key level could lead to a 50% decline. Such a drop would take XRP to a significant support level from the previous year, where it may face further challenges. On the other hand, some traders remain optimistic, suggesting that XRP is showing signs of bullish divergence on its daily chart, which could signal an upward movement if the support holds.
Mixed Market Sentiment on XRP’s Future Prospects
Although XRP's price is currently hovering between $1.91 and $1.93, reflecting a modest 3-4% increase in the last 24 hours, the cryptocurrency is still well below its early December highs of around $2.20. Analysts are divided on the coin’s short-term trajectory. While some warn that the breakdown below the support zone could trigger a deeper correction, others argue that XRP is currently in an accumulation phase. They point to the possibility of a future breakout, similar to its movements from 2023 to 2024.
Source: TradingView
XRP’s recent decline has caused it to fall roughly 10-15% from early December levels, although it remains significantly higher than its lows of $0.32 in mid-2024. Despite the current consolidation phase, the token is approximately 45% below its all-time high of $3.65, with analysts predicting potential for a future recovery if support holds.
XRP Faces Critical Test in 2025 and Beyond
As XRP continues to test its support levels, the next few weeks will be crucial in determining whether the token will continue its trend of recovery or break down further. While some analysts have noted a bullish divergence, indicating potential for a positive price move, the outcome remains uncertain. The market will be closely watching how XRP performs at these critical levels in the coming days.
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