XRP is currently navigating a precarious phase, with analysts predicting a possible downturn that could see the cryptocurrency trading below the $1 mark again. Recent insights from renowned on-chain analyst Ali Martinez highlight that XRP is struggling to maintain support levels beneath $1.77. This weakness significantly increases the likelihood of a further decline towards the $0.79 support area.
According to a post by Martinez on December 20, the analysis is grounded in data from Glassnode”s UTXO Realized Price Distribution (URPD) chart. This chart illustrates a concerning trend: a substantial portion of XRP supply is concentrated at higher price levels, while demand diminishes sharply below the $1.77 threshold. The URPD data reveals that many holders accumulated XRP in the $1.95 to $2.14 range, leading to many being underwater as prices decline. Such a scenario historically contributes to increased selling pressure.
The $1.77 price point emerges as a critical pivot for XRP, with minimal realized volume beneath it. If this level falters, the most significant concentration of realized supply is at approximately $0.79, a historical accumulation zone that may attract buyers during a deeper correction. Other intermediate support levels around $1.41, $1.27, and $1.01 appear less robust, likely providing only temporary relief rather than establishing a sustainable floor.
Despite several recent catalysts, including notable inflows into XRP spot exchange-traded funds (ETFs), the asset has faced considerable selling pressure in recent sessions. Although XRP has shown some short-term strength in line with broader market sentiment—largely influenced by Bitcoin“s attempts to reclaim the $90,000 level—the underlying technical structure remains bearish.
As of the latest data, XRP was trading at $1.95, reflecting a 4.5% increase over the past 24 hours, yet marking more than a 4% decline over the week. The asset”s current price sits significantly below its key moving averages, reinforcing a bearish outlook. The 50-day simple moving average is positioned near $2.18, and the 200-day SMA is around $2.55, both indicating that short- and long-term momentum is skewed to the downside. This alignment suggests that any potential rallies are likely to encounter resistance unless XRP can reclaim at least the 50-day average.
Additionally, the 14-day Relative Strength Index (RSI) is approximately 41, pointing to neutral but weak momentum. While XRP has not yet entered oversold territory, the RSI remains below the 50 midpoint, indicating subdued buying pressure overall.
In summary, XRP is at a critical juncture, with the potential for a deeper collapse looming if it cannot hold the $1.77 support level. Investors should remain vigilant as market dynamics evolve.
