XRP Price Must Maintain Key Level to Avert 50% Decline, Analyst Warns

As the cryptocurrency market begins to bounce back from its recent downturn, XRP is striving to recover from its recent lows. Analysts caution that the digital asset must maintain its current price levels, or it could face a significant decline of up to 50%, falling to values not seen since 2024.

Key Takeaways

XRP has seen a recent 6% drop, falling below the critical $2.00 support level.
Analysts warn that XRP must maintain the $1.92 level to avoid a significant downturn to $1.00.
Positive indicators suggest that XRP may break through resistance levels in the near future, potentially rising to $2.80-$3.00.
The altcoin's current price behavior draws parallels to previous trends that preceded major price breakouts, hinting at possible future bullish movements.

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XRP at a Critical Juncture

In the wake of the market's early-week correction, XRP experienced a 6% decline, dropping to its lowest price in weeks. On Monday morning, the price fell below the crucial $2.00 support level and continued to dip, despite ongoing institutional interest.

Over the past month, XRP has fluctuated within the $2.00 to $2.25 price range, only dropping below its lower boundary during the late November pullback. This recent correction pushed the altcoin down beyond the support level again, reaching a multi-week low of $1.88 before attempting to regain ground in a zone that has proven pivotal over the last year.

Importantly, XRP has consistently bounced back from the $1.85-$1.90 support zone following major corrections since its breakout in November 2024, reclaiming the $2.00 level each time. Nonetheless, some analysts note that the price may face a major setback if it cannot hold onto its current support levels.

According to Ali Martinez, XRP's price has dipped below its one-year trading range of $1.92-$3.27, which raises the possibility of a 50% drop if the trend continues. Martinez states that XRP must secure a daily close above $1.92 to prevent falling down to the $1.00 support level, a figure not witnessed in over a year.

Adding to this caution, Cheds Trading indicated that XRP is "flirting with a high timeframe breakdown." The chart suggests that the altcoin might be forming a rounded top or double top pattern if it continues to rise. Cheds noted that if the $1.88 neckline is breached, it could trigger a "measured drop to approximately the MA 200 area or the $1.00 range."

Is XRP Set for a Bullish Markup Phase in 2026?

Despite these warnings, some market analysts remain optimistic about XRP's prospects in the coming months. Trader Niels has expressed confidence that XRP is "looking good" at its current prices.

In his analysis, Niels pointed out that the cryptocurrency has revisited the $1.80 support zone and is displaying a bullish divergence on the daily chart, suggesting a rally toward higher prices could be imminent. He predicts that if XRP surges past the $2.20 resistance level, it could rise by 27%-37%, possibly reaching the $2.80-$3.00 range within a month.

Meanwhile, analyst ChartNerd indicates that XRP may be replicating its price behavior from 2023-2024, which led to a substantial breakout in November 2024. The pattern shows that XRP underwent an accumulation phase for 18 months, oscillating between its lower and upper range levels before entering a significant markup phase in late Q4 2024.

Following this period of expansion, the cryptocurrency appears to be entering a similar accumulation range. ChartNerd suggests that XRP may continue to consolidate within its current price range before entering another markup phase.

"Regardless of how the situation unfolds, whether it appears bleak or promising, a substantial markup phase akin to what we saw in November 2024 is likely to occur between now and late 2026," he remarked.

Currently, XRP is trading at $1.92, representing a 1.65% increase in the daily timeframe.

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