As the crypto market begins to recover from a recent downturn, XRP is trying to move higher from its latest lows. Analysts warn that the cryptocurrency must hold its current price levels to avoid a potential 50% drop, which could send it back to values not seen since early 2024.
XRP is currently at a critical level. A market correction at the start of the week pushed the price down by about 6%, reaching its lowest point in weeks. After falling below the $2.00 support on Monday, XRP continued to decline despite ongoing institutional interest. Over the past month, it had been trading between $2.00 and $2.25, only breaking below that range during a pullback in late November. This week’s drop sent it below support again, hitting a multi-week low of $1.88 before finding some stability in an area that has been important over the past year.
Historically, XRP has rebounded from the $1.85-$1.90 support zone after every major correction since its breakout in November 2024, each time climbing back above $2.00. However, some analysts caution that if it fails to hold here, a steeper decline could follow.
Analyst Ali Martinez noted that XRP has fallen below its one-year trading range of $1.92-$3.27, which raises the risk of a 50% drop. He suggests that XRP needs to secure a daily close above $1.92 to prevent a fall toward the $1.00 support level—a price not seen in over a year.
Similarly, Cheds Trading observed that XRP is “flirting with a high time frame breakdown.” The chart suggests a potential rounding top or double top pattern. If the price loses the $1.88 level, where the pattern’s neckline sits, it could confirm a breakdown and trigger a decline toward the 200-day moving average, around the $1.00 area.
Despite these warnings, other analysts are more optimistic about XRP’s prospects in the coming months. Trader Niels pointed out that XRP is “looking good” at current levels, noting it is retesting the $1.80 support zone while showing a bullish divergence on the daily chart. This could signal an upcoming move higher. He believes that if XRP breaks above the $2.20 resistance, it could rally 27%-37% toward $2.80-$3.00 within a month.
Analyst ChartNerd highlighted that XRP appears to be repeating its price action from 2023-2024, which preceded a major breakout in November 2024. Back then, it consolidated for about a year and a half before entering a markup phase. Currently, it is showing a similar accumulation range, suggesting it may continue consolidating before another significant upward move.
“Regardless of scenarios, or how ugly/beautiful it gets, a massive markup phase similar to November 2024 is likely between now and late 2026,” ChartNerd stated.
At the time of writing, XRP is trading at $1.92, up 1.65% on the day.
Frequently Asked Questions
FAQs Analyst Warns XRP Must Hold This Key Level to Prevent a 50 Drop
BeginnerLevel Questions
1 What does it mean when an analyst says XRP must hold a key level
It means that for XRPs price to avoid a steep decline it needs to stay above a specific price point on its chart If it falls below that level it could signal a major loss of support and trigger a larger selloff
2 What is the key level the analyst is talking about
While the exact price can change daily analysts often refer to key support levels like 050 or 055 for XRP These are prices where buying has historically been strong enough to stop further declines You would need to check the latest analysis for the current specific level
3 What is a 50 drop in this context
It means the analyst believes the price of XRP could fall by half from its current value if it breaks below the key support level For example if XRP is at 060 a 50 drop could take it down to around 030
4 Why would the price drop so much if it breaks one level
In cryptocurrency markets key support levels act like floors If the price breaks through the floor it can cause panic selling as traders and investors see it as a sign of weakness This increased selling pressure can lead to a rapid and deep price decline
5 Im new to crypto Should I sell my XRP based on this warning
Not necessarily Analyst predictions are not guarantees This is a risk assessment not a certainty You should consider your own investment goals risk tolerance and do your own research before making any decision
Intermediate Advanced Questions
6 How do analysts determine these key levels
They use technical analysis studying historical price charts to identify levels where the price has repeatedly bounced up or reversed down Common tools include moving averages previous swing lows and Fibonacci retracement levels
7 Is this analysis based solely on charts or are fundamentals considered
The warning about a key level is primarily