XRP faced renewed pressure early this week as the cryptocurrency traded near $1.40, following a sharp slide from its late September peak of $1.66 and a brief dip to $1.32 last week. The partial rebound prevented an immediate breakdown, but analysts indicate that the technical outlook remains precarious.
Key support levels under threat
Market observers note that XRP now hovers around a crucial support region between $1.35 and $1.38. A daily close below this range could expose the token to further declines, including a retest of $1.30 and a potential slide toward $1.25.
Technical analyst John Isige at FXStreet commented that XRP’s short-term prospects remain pressured unless buyers can secure a convincing daily close above $1.40. Isige highlighted that the 50-day exponential moving average (EMA) sits at $1.40, the 200-day EMA near $1.38, and the 100-day EMA around $1.34, clustering critical technical levels in a narrow channel.
XRP’s momentum indicators, such as RSI and moving averages, presently reflect a strong bearish bias, with multiple signals aligning below key support zones. A break below $1.35 would not simply represent losing one level but could simultaneously erase several layers of technical support.
On Monday, Investing.com classified XRP as a “Strong Sell,” as the momentum remained weak and the major moving averages generated sell calls.
Comparison of Key XRP Technical Levels
| Indicator | Level |
|---|---|
| 50-day EMA | $1.40 |
| 200-day EMA | $1.38 |
| 100-day EMA | $1.34 |
| Key support zone | $1.35–$1.38 |
| Downside target | $1.25 |
Positioning amplifies potential downside
Open interest data reveal heightened risk. The Bitrue Research Institute, a crypto market analytics provider, reported XRP’s long-to-short ratio stood at 2.32, meaning bullish leveraged positions outnumber shorts by more than two-to-one. While high long interest is not inherently bearish, it can magnify losses if support levels collapse and forced liquidations cascade.
At the same time, whale activity on major exchanges remains muted, indicating that large holders may not be accelerating the sell-off. This factor could provide some buffer if bullish traders continue to defend the current price range.
Mini dictionary: Bitrue Research Institute is the analytics and research division of Bitrue, a cryptocurrency exchange that provides market intelligence, trading activity metrics, and blockchain-related data to support digital asset analysis.
$1.25 emerges as next key level
While a fall to $1.25 remains just a downside scenario for now, analyst Egrag Crypto sees XRP consolidating broadly between $1.30 and $1.45, but warns that dropping through $1.25 could expose the $1.18–$1.20 region.
Despite the volatile price action, demand from institutional investors continues. US spot XRP ETFs attracted $11.31 million in net inflows last week, with Bitwise accounting for $10.55 million of that amount. This suggests continued interest from larger market players even amidst price declines.
If bulls fail to regain control above the $1.35–$1.38 zone, $1.30 will be the next key support, and a deeper break may bring $1.25 sharply into focus as the chart’s next major test.
XRP has now closed below the critical $1.35–$1.38 support area on a daily basis, increasing pressure on the token’s near-term technical setup. Market participants are monitoring upcoming sessions for a recovery, as sustained weakness could make the $1.25 level a more plausible target.
