XRP Price Must Sustain Above This Level or Risk Plummeting to $0.90

A cryptocurrency analyst has pinpointed an essential support level that could dictate the future stability of XRP's price or lead to a drastic sell-off, potentially driving it down to the $0.90 threshold. As market conditions grow increasingly volatile and trader sentiment shifts toward caution, XRP's forthcoming actions could be pivotal for both short-term traders and long-term investors.

Key Takeaways

XRP's price must hold above the $1.95 support level to avoid a potential drop to $0.90.
The recent close beneath $1.95 is a concerning signal for XRP's near-term trajectory.
The potential breakdown target is $0.90, indicating a more than 50% decline from current levels.
Caution is advised for traders, with a recommended wait for a daily close above $1.95 before re-entering the market.
Long-term accumulation levels to watch include $1.61, $1.42, and $0.90, with $0.75 as a critical breakdown area.
A bullish recovery remains possible, but traders should stay alert to market conditions.

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Potential for XRP to Drop to $0.90 If Support Fails

A cryptocurrency analyst known as 'Guy on the Earth' on X has shared an updated forecast for XRP, alerting traders about a critical price level that could spell the cryptocurrency’s near-term trajectory. He noted that XRP has recently closed below the $1.95 monthly support zone for the first time in 13 months, suggesting an increase in downside risk. His assessment indicates that this slipping below the support level could lead to significant technical repercussions if XRP does not quickly rebound.

In his analysis, the expert shared a chart demonstrating that this is the second instance XRP has dipped below the $1.95 support on a weekly basis. Guy on the Earth remarked that the last time this occurred was amid April's US tariff-induced market stress, which prompted a crash for both XRP and the wider cryptocurrency space.

If past trends hold true, the cryptocurrency could face another decline if it fails to maintain the $1.95 support level. The analyst has projected a breakdown target of $0.90, indicating a more than 50% drop from the current price of around $1.85. For XRP's price to stabilize, bullish traders must reclaim and maintain the $1.95 level as soon as feasible.

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Source: Chart from Guy on the Earth on X

Guy on the Earth observed that XRP recently made an effort to rise back above $1.95 but faced rejection, establishing another lower high and highlighting its overall bearish trend. He cautioned that if XRP fails to reclaim this support on the monthly chart within the next few days, the cryptocurrency could experience accelerated downside momentum.

For traders who may feel uneasy about the current market situation, the analyst recommended reducing their exposure and waiting for a confirmed daily close above $1.95 prior to re-entering the market. He explained that this strategy could minimize losses while allowing traders to remain poised for a possible price recovery.

From a long-term perspective, Guy on the Earth has identified several key accumulation zones in the event that XRP’s price continues to decline. Significant levels to monitor on the chart include $1.61, $1.42, and the $0.90 target, with $0.75 being the initial breakdown level from the previous rally. He also pointed out that increasing selling pressure from Bitcoin could pave the way for more pronounced downside movements for XRP.

Analyst Affirms Potential for Bullish Recovery

In the latter part of his analysis, Guy on the Earth emphasized that the recent price movements do not signal a comprehensive downturn for XRP. He indicated that the cryptocurrency is only a few cents away from the rectangle resistance and noted that the Bullish Divergence signal has yet to fully manifest across various timeframes.

According to the analyst, a recovery and subsequent price rally could still be on the horizon for XRP, highlighting that selling pressure is beginning to wane. Nonetheless, he warned that a vigilant approach is necessary, especially considering XRP’s two consecutive weekly closes beneath critical support levels.

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