Analyst Identifies Key XRP Support Level to Mitigate Downside Pressure

Market analysts are keeping an eye on XRP's price movements, as recent volatility tests important support levels. A technical analysis reveals a crucial price zone that is helping to limit downside risks for XRP, which has struggled to regain previous highs and recently dipped below the psychological $2 threshold.

Key Takeaways

XRP is currently trading near $1.85, a 2.7% decline in the last 24 hours and over 7.8% in the past week.
A recent breakdown below $1.93 indicates increased selling pressure amid market volatility.
Short-term trading below $1.88 maintains downside pressure, while $1.85 is viewed as a potential support level.
XRP has seen a significant contraction in supply, dropping from 3.9 billion to 1.6 billion tokens since early 2025.
XRP is experiencing a downtrend, needing to surpass $2.27 to revive bullish prospects.

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XRP's Critical Support Keeps Downside Risks in Check

Crypto analyst Skipper has provided a fresh technical update on XRP, focusing on the current market dynamics and identifying a key support level that could help stem further price declines. Notably, XRP's price recently fell below $1.93, which signals increasing selling activity and a reshaping market.

In the context of overall market weakness, XRP has struggled to maintain critical price levels. The cryptocurrency is currently being traded at around $1.85, reflecting a notable decrease of approximately 2.7% over the past 24 hours and more than 7.8% during the last week. The inconsistent price movement has kept XRP confined below several resistance points. Skipper noted that if XRP continues to trade below $1.88, the downside pressure is likely to persist in the near future.

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Source: Chart from Skipper on X

Despite consistent Spot ETF inflows since its launch in November, Skipper pointed out that XRP's short-term trading activity seems mainly influenced by technical factors rather than fundamental news. He also mentioned that XRP's market supply has seen a significant contraction, decreasing by 45% from roughly 3.9 billion tokens at the start of 2025 to about 1.6 billion tokens in December. This reduced supply may shape XRP's pricing dynamics and market scarcity.

XRP Encounters Ongoing Decline Amid Market Instability

In a follow-up post, Skipper noted that XRP's price had dropped by 5% as the crypto market faced additional selling pressure, with several major altcoins continuing their downward trend. The price of XRP fell to around $1.81, indicating heightened risk aversion among investors. Although XRP had been one of the year's top-performing assets, it now runs the risk of falling further.

Skipper highlighted that XRP has been on a consistent downtrend since July 2025, with each recovery attempt being weaker than the last. To improve the outlook, bulls will need to reverse this trend, which would require XRP to rise above the high of $2.27 from the previous weak bounce in late November.

The analyst also referenced historical data, pointing out that in previous cycles, when XRP trades below the 50-week Simple Moving Average (SMA) for a period of roughly 50 to 84 days, a significant rally often follows. Presently, XRP has remained beneath its 50-week SMA for approximately 70 days, putting it within this historical timeframe for a potential rebound.

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XRP trading at $1.87 on the 1D chart | Source: XRPUSDT on Tradingview.com