Is XRP Facing a Bearish Trend? Could the Price Drop Below $1?

Recent analyses indicate a bearish shift in the XRP price structure, prompting concerns over a potential drop below the $1 mark. Crypto analysts outline critical price levels to watch in the coming days as market sentiment evolves.

Key Takeaways

XRP's price structure has turned bearish, suggesting a possible decline.
Important price levels to monitor are $1.11 and $0.87, with concerns about a drop below $1.
Current resistance is identified at $1.40; staying below this level indicates a downward trend.
Analysts suggest waiting for lower support levels or a breakthrough of $1.65 before trading.
Recent market activity shows increased trading volume and long positioning, despite bearish signals.

XRP Price Structure Signals Bearish Trends

According to crypto analyst CasiTrades, the XRP price structure has entered a bearish phase, indicating that the altcoin might experience further declines. CasiTrades observed that the price is gaining selling momentum, and a break of key trendlines suggests emerging resistance. The analyst highlighted that XRP is on track to fall below the B-wave low, altering its momentum toward critical support levels.

CasiTrades pinpointed the $1.11 and $0.87 levels as significant targets for downside movement, suggesting there’s a genuine risk of XRP falling under $1. In the short term, the resistance level appears at $1.40, with the analyst stating that the market could trend lower as long as XRP remains below this threshold. Because of this situation, she believes that the current market levels represent a risky, no-trade zone. Participants are advised to wait for lower support levels or a breakthrough at the $1.65 macro resistance.

XRP
Source: Chart from CasiTrades on X

Interestingly, XRP recently exceeded the $1.40 resistance. If it manages to break through the $1.65 macro resistance, it could invalidate the existing bearish structure, as CasiTrades pointed out. This upward movement aligns with Bitcoin's rise to approximately $70,000 after falling to $64,000 earlier in the week.

Data from CoinGlass reveals a surge in derivatives market activity coinciding with XRP’s rise above $1.40. Trading volumes have increased by over 33%, reaching $6.20 billion, while open interest has jumped by more than 6% to $2.39 billion. Currently, the long/short ratio is above 1, indicating that many traders are taking long positions on XRP.

XRP Still Searching for a Bottom

In another analysis, crypto expert TARA expressed uncertainty about whether XRP has found its bottom price. She noted that a strong indication the bottom has been established would be if XRP successfully breaks above the macro .618 level at $1.47. At present, the price is testing this critical resistance level, which TARA considers a pivotal moment for the altcoin.

For XRP to truly establish a bottom, TARA believes a clean breakout above $1.88 is necessary, although such confirmation may still be distant. Notably, she identifies that overcoming the macro .618 resistance point is an essential first step.

As of now, XRP is trading at around $1.44, marking a rise of over 6% in the last 24 hours according to CoinMarketCap.

XRP
XRP trading at $1.44 on the 1D chart | Source: XRPUSDT on Tradingview.com