XRP is currently testing a significant support level near $1.90, having traded at approximately $1.92 on December 17 after a rebound from recent lows. Analysts express concern that this recovery may be precarious, emphasizing the necessity for the token to maintain its current price to avert a deeper correction.
Several market observers noted a near 6% drop in XRP during the early-week market pullback. This decline saw the token momentarily breach the $2.00 support level, falling to a multi-week low near $1.88. This movement pushed XRP below the lower boundary of its month-long trading range, which had been between $2.00 and $2.25.
The $1.85 to $1.90 zone has historically acted as a crucial support area since XRP”s breakout in November 2024, with price recoveries typically occurring from that region following major corrections. However, analysts warn that repeated tests of this support can weaken its integrity over time.
Ali Martinez, a technical analyst, indicated that XRP has now slipped beneath its one-year trading range, which he defines between $1.92 and $3.27. He stated that a daily close above $1.92 is essential to prevent a more severe downturn. Should this level fail, Martinez cautioned that XRP could revisit the $1 area, suggesting a potential downside of 50% from current prices.
Similarly, analyst Cheds Trading pointed out that XRP is nearing what he describes as a “high-timeframe breakdown.” He highlighted a potential rounding top or double-top formation, indicating that a confirmed dip below $1.88, where the pattern”s neckline exists, could lead to a significant move toward the 200-day moving average near $1.
Despite this cautious outlook, other traders argue that XRP is stabilizing rather than on the verge of collapse. Trader Niels noted that XRP is once again sweeping liquidity near the $1.80 support zone and exhibiting bullish divergence on the daily chart, a setup that often precedes relief rallies. He suggested that a breakout above $2.20 could enable XRP to rise by 27% to 37%, targeting the $2.80 to $3.00 region in the coming weeks, provided broader market conditions improve.
Another analyst, ChartNerd, observed parallels between XRP”s current structure and its accumulation phase from 2023 to 2024, which led to a sharp breakout in late 2024. He proposed that XRP may continue to consolidate before entering a new markup phase.
The mixed sentiment surrounding XRP persists despite steady inflows into spot XRP ETFs, which have experienced 18 consecutive days of positive closes. Market commentator Efloud remarked that XRP”s chart structure remains weak, noting that the token has lost key daily imbalance zones. He emphasized that without reclaiming essential resistance levels, such as $1.98, any upward movements are likely to be short-lived. Additionally, Efloud mentioned that if selling pressure intensifies, the $1.53 area could become a potential accumulation zone, though he clarified that this was a hypothetical scenario rather than a definitive price target.
