XRP Update, a well-followed crypto analyst active on X (formerly Twitter), issued a warning to XRP traders after the cryptocurrency dropped below a key support at $1.25. Market participants had been monitoring this area closely amid heightened selling pressure, and the break triggered renewed concerns over further downside.
Key support levels under threat
After failing to reclaim the $1.3128 level earlier this month, XRP hovered close to $1.25, a zone that had previously held up during multiple bouts of selling. On Friday, this support finally gave way, sending XRP down to $1.2382, a daily decline of over 5% at the time of the analyst’s post.
The analyst emphasized the importance of the next support zone, stating, “$1.20 is next. If that breaks, the $1.00 zone could be back in play.”
With the loss of $1.25 support, traders now turn their attention to $1.20, and any close below this level could quickly bring the $1.00 mark back into focus, representing a crucial structural level last tested before August’s breakout.
After the break of $1.25, the next significant support stands at $1.2005, followed by $1.0009, which last served as a base just before XRP’s surge in late August.
The price has continued to fall
XRP continued to lose ground after breaching $1.25, now trading at $1.20, an 8.05% decline compared to the previous day. The rapid descent highlights the strength and persistence of selling pressure across the market.
Should XRP post a daily close below $1.20, traders and chartists suggest the next logical target will be the psychologically and technically significant $1 zone. This threshold proved resilient during August, when XRP quickly rebounded after falling below it.
US election outcome impacts investor sentiment
The recent wave of selling in XRP is not solely driven by general market weakness, but is amplified by developments in US politics. Democrats clinched both the House and Senate during the midterm elections this week, a result that clouds the outlook for crypto legislation in the coming years.
XRP’s bullish case for 2025 and beyond depended on the expectation of clear regulatory measures being advanced in a crypto-friendly Congress. The new composition of the legislature dims the timeline for potential reforms that could favor Ripple and XRP investors, leaving major regulatory decisions in limbo.
Broader financial markets also reacted sharply, with the Nasdaq recording significant losses as investors processed new risks related to technology and AI sector regulation under the incoming congressional majority.
Mini dictionary: Ripple is a fintech company known for developing payment and settlement technology for financial institutions. Its associated token, XRP, functions as a bridge currency for cross-border payments on the RippleNet network.
Next steps and analyst forecasts for XRP
XRP registered a deeper loss than Bitcoin and Solana during the latest market pullback, falling 17.55% month-on-month. This pronounced decline reflects the cryptocurrency’s heightened sensitivity to US regulatory developments, especially when compared to broader trends in the digital asset sector.
With XRP trading near a crucial threshold and previous supports failing to hold, many traders are preparing for further volatility. CharNerd, another recognized crypto analyst, projected that XRP could reach the $1 mark before year-end, a prediction that has gained traction as technical and macro factors converge.
| Asset | % Change (24h) | % Change (30 days) |
|---|---|---|
| XRP | -8.05% | -17.55% |
| Bitcoin | -4-5% (approx.) | -11% (approx.) |
| Solana | -5-6% (approx.) | -13% (approx.) |
As XRP hovers at the $1.20 mark, all eyes remain on whether buyers can defend this critical level and prevent a retest of the $1 region in the coming days and weeks.
