XRP has entered a period of heated debate among investors over whether it has finally reached the bottom of its latest selloff wave. As market participants closely track upcoming price movements, all eyes have turned to whether the $1.12 support can hold firm in the coming days and how the price will respond if it approaches the $1.25 zone. According to CoinCodex data, XRP was trading at $1.13 at the time this article was written.
Key thresholds in technical analysis
Crypto analyst CasiTrades noted that XRP recently touched the 0.786 Fibonacci retracement level at $1.09. In technical analysis, this area is frequently seen as a last strong line of defense where reversals may begin to form. The rebound from this region, which pushed the price back above $1.12, has increased expectations that a short-term local bottom may have been set.
According to the analyst, the $1.12 level is currently the market’s closest battleground. This area also overlaps with the 0.5 Fibonacci retracement mark. If buyers are able to defend this support in the short run, the recovery could gain traction, with $1.25 emerging as the next key resistance zone.
CasiTrades emphasized that maintaining support at $1.12 could fuel a recovery, but the $1.25 territory is likely to be decisive for XRP’s next major direction.
Why is the $1.25 zone under scrutiny?
According to Elliott Wave analysis, the $1.25 level marks the upper boundary of a potential fourth wave recovery. A firm break through this barrier would likely be seen as a significant signal of renewed bullish momentum. In this scenario, confidence could rise that a broader correction in XRP may have already bottomed out.
On the other hand, failure to decisively surpass $1.25 could suggest that the current upward move is merely a temporary reaction within a larger corrective trend. For the bullish outlook to strengthen, XRP must first stay above $1.12, then reclaim $1.25 convincingly. A move above $1.30 could reinforce the recovery, while any surge toward $1.65 would greatly decrease the risk of another sharp decline.
Mini glossary: Elliott Wave theory suggests that market moves unfold in recurring waves shaped by investor psychology. Fibonacci retracement is used to determine key support or resistance levels after significant price moves.
What are the critical levels if the outlook turns negative?
If sellers regain strength in the resistance area, a renewed downturn remains a possibility. According to CasiTrades, a reversal near $1.25 could drive XRP back to test support at $1.09. Should this level also fail, the price could potentially fall as low as $0.90.
Such a move might represent the conclusion of a much larger second wave correction. The analyst believes that following a correction of this magnitude, the foundation for a more sustainable recovery could be established. Thus, how the price behaves between $1.12 and $1.25 in the short term is now being closely watched, as it may reveal whether XRP’s recent bounce is signaling a lasting bottom or just a fleeting rally.
XRP’s place in the crypto market
Since 2014, XRP has stood out as the only digital asset besides Bitcoin to consistently remain in the top 10 by market capitalization. This enduring presence underscores XRP’s continued significance in the market, even amid price uncertainty.
