XRP Holders Face Continued Challenges as Support Levels Fail

XRP holders may be bracing for a tough period as the cryptocurrency continues to decline in a weakening market. Analysts have expressed concerns about XRP's recent performance, believing that a rebound to higher price levels seems unlikely in the short term. The cryptocurrency has dropped below significant support levels, leaving fewer technical defenses against further price drops.

Key Takeaways

XRP is facing continued challenges as it trades below major support levels.
Analysts report a bearish outlook, with predictions of potential declines towards $0.90 if the price fails to stabilize.
The cryptocurrency remains in a downward trend, with a significant focus on the $1.95 level as a critical support area.
Short-term reversals are possible, but they may not address the broader bearish trends affecting XRP.

crypto  XRP Tension

All Support Crumbles for XRP

A crypto market analyst known as 'Guy on the Earth' on X recently shared a grim forecast regarding XRP's future. In a post on Thursday, he highlighted that the cryptocurrency appears to be on the verge of further declines as its market structure deteriorates. The current price actions are threatening to fall outside the Descending Channel, indicating overall weakness rather than stability.

The analyst assessed that the likelihood of XRP reaching the $1.95 mark before the weekly close is extremely low. Moreover, if XRP fails to hold onto the consolidation range that has supported it since November 2024, it may face a technical target near $0.90. He noted that recent confirmations in the monthly timeframe are consistent with the impending close of the two-week chart in just a few days.

Guy on the Earth expressed that the current price structure lacks optimism, stating that no significant support levels are holding strong. The demand for XRP seems weak, which puts the cryptocurrency at risk of ongoing selling pressure and possible further declines. His evaluation painted a bleak picture, suggesting that "the market is what it is" at this stage.

XRP Price
Source: X

The accompanying chart illustrates XRP's price movement within a downward channel that has been in effect for several months. Each attempt to bounce back has been hindered by descending resistance, emphasizing the cryptocurrency’s bearish trend. Recent candle formations indicate that XRP is nearing the lower boundary of the Descending Channel, raising the risk of further corrective action.

Momentum indicators at the bottom of the chart also demonstrate ongoing challenges for XRP. Its Relative Strength Index (RSI) is positioned close to the lower end of its range, signaling persistent weakness as the price struggles to recover.

Short-Term Hope for XRP

When a member of the crypto community inquired whether a daily close back within the Descending Channel could temporarily alleviate pressures on XRP, Guy on the Earth acknowledged that this is possible. However, he described such a development as a “trivial” factor in comparison to larger structural concerns.

The focus of the crypto analyst remains on the critical $1.95 level in the context of the two-week close. He emphasized that this area has been a key support zone for XRP over the past 13 months. While a bounce back into the channel wouldn’t negate the overall bearish trend, it could suggest that XRP still has potential for growth.

XRP price chart from Tradingview.com
Price moving up slowly | Source: XRPUSDT on Tradingview.com