XRP, the digital asset developed by Ripple Labs, is approaching a pivotal support level after enduring several weeks of selling pressure. Cryptocurrency analyst XRP Update emphasized that the price now trades just above a significant support area, prompting heightened attention from traders and investors.
Major support and resistance levels
At the time of analysis, XRP hovered around $1.27, staying marginally above the $1.25 threshold. XRP Update, a well-known market commentator, described this level as the strongest support visible on the daily chart extending from February to late October.
The chart features prominent horizontal levels at $1.6003, $1.4504, and $1.2539. These have served as key zones for both support and resistance during the coin’s volatile price moves over recent months.
According to the analyst, a daily close below $1.25 would raise the risk of a deeper correction, while a hold above it could serve as a potential base for a price recovery.
XRP is currently trading close to $1.27, just above the key horizontal support at $1.25. A sustained hold could establish a base for recovery, but a daily close below this support would increase downside risk.
The path of the decline
XRP reached a peak near $2.40 in January before entering a prolonged downtrend. By late summer, the asset fell to the $1 mark, losing much of its earlier gains.
After the decline, XRP managed a sharp rebound, surging 50% in less than three days. However, selling resumed shortly thereafter, erasing much of that recovery throughout October. The asset has now surrendered most of its gains from the August rally.
The $1.45 mark, which previously acted as support, has turned into resistance and has not been reclaimed in current trading. Resistance also remains overhead at $1.60, positioned at the top of this year’s range.
Analyst’s outlook: What’s at stake
XRP Update clarified that the fate of the current trend hinges on the $1.25 support holding on a daily closing basis. The analyst noted that this level provided critical support during the June-to-August pullback. If XRP closes above $1.25, a scenario for recovery remains in place, but a close below would undermine a key argument for bullish momentum.
The analyst views $1.25 as a decisive line: holding it could allow for stabilization and a potential rebound, while losing it would likely open the door to further losses.
If the $1.25 support survives, XRP would next need to overcome resistance at $1.4504 to shift market sentiment. Above, the $1.6003 level stands as the next major target, marking the upper boundary of this year’s trading range.
| Level | Role | Status |
|---|---|---|
| $1.2539 | Immediate support | Under pressure |
| $1.4504 | First resistance | Not yet reclaimed |
| $1.6003 | Major resistance | Untested since October peak |
XRP Update, known for monitoring technical price zones across major digital assets, continues to watch these crucial levels as traders look for direction. The analyst asserts that a bounce from $1.25 could reignite bullish activity, but a breakdown below this mark may trigger further declines.
Mini dictionary: Ripple Labs, a US-based technology company, created XRP as a digital payment protocol designed to enable fast and low-cost international money transfers.
