XRP is currently contending with its pivotal support level of $1.90 as a surge in sell-off activity meets increasing inflows from exchange-traded funds (ETFs). This situation has left traders uncertain about whether a significant price drop or a recovery is imminent.
After experiencing a sharp decline of 8.16% within 24 hours, XRP is trading at approximately $1.946, with a daily trading volume nearing $9.6 billion. This retreat places the price right at the closely watched $1.90 support, a benchmark that has historically signaled strong accumulation periods for the cryptocurrency.
Market analyst ChartNerd, recognized for his in-depth analyses of XRP on platforms like TradingView and X, emphasized the importance of this support level, stating, “$XRP now sits on the $1.90 lifeline.” This position aligns with significant price points from previous years, including the 2017 all-time high candle close and the 2021 swing high, marking them as crucial reference points on the broader XRP price chart.
Over the past month, XRP has declined by approximately 19%. Despite this, interest in Ripple and activity surrounding ETFs have increased, along with greater institutional engagement in the cryptocurrency. The defense of the $1.90 level is critical, as a confirmed breakdown beneath this threshold could lead to further losses, with potential support levels identified at $1.55 and $1.25.
Some analysts are observing the formation of a bullish Bat harmonic pattern, which often appears at exhaustion points in trends. While such patterns alone cannot predict outcomes, they frequently indicate historical price stabilization zones.
Interestingly, the decline in XRP prices coincides with the launch of the Bitwise XRP ETF on the NYSE, which achieved around $25 million in trading volume on its first day. In addition, other XRP ETF products attracted approximately $118 million in inflows just before the launch, reflecting a growing institutional interest in the cryptocurrency, despite the prevailing volatility.
Traders remain cautious regarding the recent pullback as the sell-the-news dynamic from ETF events tests the $1.90 support level, which could enable recovery if maintained. The inflows indicate a steady appetite from traditional finance, even as short-term traders react to the typical “sell-the-news” phenomena following notable ETF introductions.
Moreover, analysts draw parallels to the price movements observed during Bitcoin”s ETF launch in 2024, where BTC initially fell from $49,000 to below $40,000 before rebounding as inflows stabilized. However, XRP might experience a delayed recovery, especially with additional ETFs from Grayscale and Franklin Templeton expected to enter the market, potentially amplifying both inflows and volatility.
Technical analysis from DEXWireNews highlights a bearish symmetrical triangle forming on the XRP live chart, a pattern that generally suggests trend continuation. The relative strength index (RSI) is approaching 30, indicating oversold conditions as the price hovers around the $1.80 mark.
In summary, XRP is at a crucial juncture, with the $1.90 support level serving as a critical pivot point that could dictate whether deeper declines occur or a recovery takes hold. While ETF inflows suggest robust long-term demand, short-term volatility and profit-taking pressures complicate the current situation. Technical indicators are mixed, presenting a landscape where oversold signals and long-term accumulation zones offer potential stabilization against bearish patterns and the risk of a breakdown below $1.80.
The next few days will be vital for XRP as market participants closely monitor how buyers respond to this key support level.
