XRP Dips Below $1.95 After 13 Months: Analyst Sets $0.90 Target

XRP has recently fallen below a critical level that has supported its price for much of the past year—the $1.95 mark. Crypto analyst Guy on the Earth (@guyontheearth) highlighted that XRP has closed underneath this zone on a larger timeframe, specifically pointing out the two-week chart. He stated, “For the first time in 13 months, XRP has closed under this monthly support at $1.95 on the 2-week chart. This marks the second instance on the weekly chart—April tariffs being the first.”

Key Takeaways

XRP has fallen below the significant $1.95 support level for the first time in 13 months.
Analyst Guy on the Earth sets a potential target of $0.90 following this breakdown.
$1.95 is seen as a critical boundary; reclaiming this level could negate bearish implications.
A risk management strategy is advisable for investors feeling uneasy, with suggested buying levels as XRP potentially declines.

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Importance of the Two-Weekly Close for XRP

Following this analysis, he expressed concern about the consequences of this breakdown. “The technical target of this breakdown is $0.90,” he said. “Use this information as you see fit. Everyone must make their own decisions at this time. The goal is to recover back above $1.95.”

XRP 2-week price chart
XRP price analysis, 2-week chart | Source: X @guyontheearth

He emphasized that the $1.95 level was not merely a mid-range price point, but rather the lower boundary of a larger consolidation “rectangle.” Losing this support could lead to a significant downward movement, with the reclaiming of $1.95 being the key factor that would invalidate this analysis.

He offered a risk-management strategy for those who might feel uneasy holding their investments during this potentially downward movement. “If you're uncomfortable holding your position due to this breakdown—consider selling to minimize risk to a level where you feel more secure,” he advised. “You could buy back in once XRP closes above $1.95 on the daily chart (or any timeframe you trust), reducing your percentage loss. However, if the price does hit $0.90, that could represent a further 50% loss in capital.”

For investors viewing this market shift as an opportunity, Guy outlined incremental levels he considers as potential buying points as prices decrease. “If you believe in XRP’s long-term potential and prefer to avoid trading, consider accumulating more as prices drop,” he recommended. “Key buying levels are $1.61, $1.42, down to the $0.90 target, and the initial breakout point at $0.75.”

Even in a bearish scenario, he warned against assuming a linear price decline to all listed levels. “We’ve seen a straight drop for weeks, so it’s unlikely that all these targets will be hit right away,” he noted. “The lowest point this week could be $1.42 if conditions worsen, which is possible with this breakdown, especially if Bitcoin experiences a significant sell-off.”

Critics have emerged regarding the timeframe used to suggest a breakdown. One account, XRP whale (@cryptoXRPwhale), contested the breakdown assertion, stating, “The 2-week chart isn’t significant. You can’t pick a certain timeframe and claim it’s a structural breakdown that supports your narrative… lol.” In response, Guy reiterated that the level in question is a higher-timeframe support, not just a short-term indicator. “Look at the chart. It held for 13 months and has now broken structure. The lower boundary is monthly support. This has been my position,” he responded.

Some attempts were made to interpret the bearish target positively. “Any price below $1 will be short-lived & sets XRP up for a stronger upward move beyond its all-time high,” noted Lawrence Bensen (@Lawrence_Bensen), referring to previous cyclical lows and a reported dip below $1 on Binance earlier in the cycle. Guy acknowledged this point but maintained his technical assessment. “Yes, it has already reached $0.90 on Binance [on October 10]. I believe we will recover before dropping as low as $0.90, but that remains the technical target following this consolidation breakdown.”

In conclusion, his immediate outlook leaned towards caution, largely due to liquidity conditions rather than a firm belief that $0.90 must be reached. “I find it hard to believe that during Christmas, people will inject a lot of money into this market,” he remarked. “Low liquidity has been an ongoing issue, and this week won’t help. Therefore, the slow decline continues.”

At the time of writing, XRP was priced at $1.89.

XRP price chart
XRP hovers below the red zone, 1-week chart | Source: XRPUSDT on TradingView.com