XRP Price Eyes $1.80 Fibonacci Support as Possible Reversal Approaches

XRP price tests key support, holding this area can lead to a reversal

XRP's price is retreating to a significant Fibonacci support level around $1.80, which could signal a short-term reversal if buyers manage to protect this zone and recover value.

As XRP approaches a critical juncture, its price hovers around the $1.80 mark, correlating with a local 0.618 Fibonacci retracement and aligning with support from higher time frames. Following a corrective phase after reaching recent highs, the price is now stabilizing in a historically favorable area for buyers.

While definitive confirmation is needed, the current developments suggest the potential onset of a reversal, with possible upward targets emerging if key levels are successfully reclaimed.

Key Technical Points for XRP Price

XRP price tests $1.80 Fibonacci support as reversal looms - 1
XRPUSDT (4H) Chart, Source: TradingView

The ongoing pullback in XRP seems corrective rather than impulsive, as the price retraces into the 0.618 Fibonacci zone after failing to climb higher. This pattern aligns with a healthy market structure during transitions, where the price often revisits support levels before moving forward.

Crucially, the $1.80 level holds significance beyond just Fibonacci support. It stands above a higher-time-frame support zone, indicating that buyers defending this area are doing so from a more advantageous position. As long as the price maintains this region on a local time scale, the likelihood of moving toward higher resistance levels increases.

From a market perspective, XRP is making an effort to shift from low acceptance back to value. However, this transition is still in its preliminary phases. For the bullish scenario to strengthen, the price must reclaim and sustain itself above the Value Area Low (VAL) on a closing basis. Successfully maintaining a position above this value would signify that the market is no longer comfortable trading at lower prices, often a precursor for sustained upward momentum.

The first notable upside target is at $1.98, which serves as both local resistance and a critical volume reference point. If this area is reclaimed decisively, it would indicate that buyers are regaining dominance, paving the way for further movement toward $2.21, where higher-time-frame resistance lies.

Breaking through the $2.21 level could have broader implications, signaling a major shift in market structure from corrective to bullish.

Volume dynamics will play a crucial role in confirmation. Reversals leading to lasting trends are generally backed by increasing volume, showcasing strong market participation and confidence. Conversely, a bounce on low volume increases the risk of rejection near resistance and could lead to ongoing range-bound or corrective price activity.

In summary, while the price action structure is constructive, it remains unconfirmed. Maintaining above $1.80 is vital to uphold the bullish outlook. A significant drop below this level would negate the reversal scenario and redirect focus toward deeper support levels, despite strong fundamentals underscored by Ripple's financing in European payments highlighting the contrast between improving fundamentals and immediate technical signals.

XRP Price Action: What Lies Ahead

Should XRP successfully defend the $1.80 Fibonacci support and reclaim the Value Area Low on a closing basis, a move toward $1.98 and potentially $2.21 appears increasingly probable. Conversely, failing to maintain support would postpone reversal confirmations and keep the price within a corrective or range-bound state.

Key Takeaways:

XRP is testing crucial Fibonacci support near $1.80, important for potential bullish reversal.
The price is stabilizing at a historically significant level which could attract buyers.
Key targets for upward movement are at $1.98 and $2.21.
Volume dynamics will be critical in confirming any reversal or trend change.
A decisive drop below $1.80 could shift focus back to deeper support levels.