XRP climbed to $1.32 on Friday, recovering from a pronounced sell-off earlier in the week. The recent decline saw the token fall from above $1.42 on September 15 to an intraday low near $1.27, with prices momentarily touching close to $1.25 before finding stability in the $1.29 to $1.32 range.
XRP enters key accumulation zone
This rebound unfolded in an area that many market participants had identified as a likely accumulation zone prior to the latest volatility. Cryptocurrency analyst Egrag Crypto, writing on X, described the $1.26 to $1.30 range as an initial buy zone in the event of a hawkish move from the Federal Reserve. According to the analyst, a rapid decline into this zone could offer a buying opportunity rather than signaling panic.
A move into $1.26 to $1.30 might reflect buyers absorbing supply, but whether this marks a durable bottom will depend on sustained demand in the coming sessions.
XRP dropped almost directly into this target area before stabilizing, suggesting some appetite among buyers to absorb excess selling pressure. However, Egrag Crypto also identified a lower region between $1.15 and $1.25 as a potential support if selling accelerates, leaving the risk of further downside unresolved.
The Relative Strength Index (RSI) on a two-week basis has now reached its lowest point in 13 years, a signal that technical momentum is unusually stretched and that immediate oversold conditions could be in play.
Mini dictionary: Relative Strength Index (RSI), a technical indicator that measures the speed and change of price movements to identify overbought or oversold conditions in a market.
Resistance at $1.38 crucial for reversal
Analyst Ali Martinez previously identified the $1.31 to $1.35 band as a crucial support zone and noted $1.38 as the breakout level XRP must reclaim to validate a bullish reversal. Martinez suggested that a clear move above $1.38 could trigger momentum toward $1.60, but the recent decline damaged this technical setup.
A decisive move above $1.38 would likely open the door for a renewed rally targeting $1.60, but this first requires reclaiming and holding above former support levels.
Now, any recovery from $1.25 to the $1.32 area is viewed merely as a rebound, not a confirmed change in trend. Oversold conditions often produce strong countertrend reactions, but unless XRP can return above $1.31 and push past $1.38 with conviction, technical recovery is considered incomplete. The token remains below long-term moving averages, adding to the cautious outlook.
$1.29 becomes pivotal downside threshold
The $1.29 level has emerged as a critical short-term support. Data from BeInCrypto highlights that XRP’s 20-week exponential moving average is near this price, increasing its significance beyond a typical daily support level. ChartNerd, another technical analyst, warned that consecutive daily or weekly closes below $1.29 could set the stage for a further drop toward $1.00.
He also noted that XRP continues to post lower highs and lower lows, a pattern more consistent with ongoing consolidation than with the reversal bulls hope to see. Defending $1.29 convincingly, accompanied by an improving RSI and the reclaiming of past support levels, would reinforce arguments for seller exhaustion. On the other hand, a close below this threshold could strengthen the case for a false rebound during a broader downtrend.
Ultimately, the next decisive move for XRP depends on price action between $1.29 and $1.38, rather than simply reacting to current oversold technical readings.
| Level | Type | Implication if Broken |
|---|---|---|
| $1.38 | Key Resistance | Potential breakout, targets $1.60 if surpassed |
| $1.31–$1.35 | Support/Resistance | Must be reclaimed for trend reversal hopes |
| $1.29 | Pivotal Support | Close below increases likelihood of further decline |
| $1.15–$1.25 | Deeper Support | Next target if $1.29 fails |
| $1.00 | Major Support | Possible destination on sustained breakdown |
