Key Support Breaks: Why is XRP Plunging Today?
The crypto market is going through a turbulent phase, and XRP is no exception. After fiercely defending the $1.40 level for several weeks, the asset has finally given way. Currently trading in a range of $1.38 to $1.39, the Ripple token is down by approximately 1.7% over the last 24 hours.
However, this correction has allowed smart money to accumulate ahead of a potential short-term bounce, as indicated by the formation of a 1H order block at this level. Consequently, XRP could target $1.43 in the coming days before potentially resuming its downtrend over the medium to long term.
Technical Analysis: How Low Can the Correction Go?
On higher timeframe (HTF) charts like the daily, indicators are flashing red. The RSI (Relative Strength Index) approached overbought territory, signaling a clear exhaustion of buying momentum, without yet dropping into extreme oversold levels. Meanwhile, the MACD has confirmed a bearish crossover, indicating that sellers have taken control of the order book.
Furthermore, XRP faced a rejection at its daily order block. Profit-taking has been so significant that XRP is highly likely to revisit the bottom of its Mean Reversion Channel in the coming months, between $1 and $0.87. This represents a drop of nearly 30% from its current level.
If the selling pressure persists, XRP could slide toward its next safety net. The first downside target sits around $1.35, followed by a stronger support near $1.31. A breakdown below these levels could even pave the way for a deeper retracement toward the critical $1.25 zone.
Conversely, to reignite a bull run, buyers must reclaim the $1.50 zone. A breakout above this resistance, backed by significant trading volume, would invalidate the current bearish scenario. In that case, the price could quickly target $1.80. In the short term, the order block around $1.44 is the immediate resistance to overcome.
Should You Buy the Dip or Flee Before Another Crash?
The current situation surrounding XRP is dividing analysts and investors alike. On one hand, XRP’s fundamentals are at an all-time high. Additionally, the Clarity Act could be introduced very soon, representing a major potential catalyst for XRP.
Nevertheless, from a technical standpoint, XRP is likely heading for a slow bleed down to $1.
But in the ruthless world of crypto trading, every massive correction can hide a golden opportunity. Recent institutional inflows into XRP-related products show that underlying interest remains intact despite the surrounding volatility. If the broader market manages to reverse the trend, the token could catch sellers off guard.
As the price dangerously consolidates on a razor’s edge, the question is on everyone’s lips: Will XRP shatter its upcoming supports, or is it gearing up for an explosive rebound toward its previous ATH?
For now, the long-term trend remains bearish. From a liquidations perspective, the upside cluster sits around $1.48, while the long clusters are located at $1.31 and $1.27. The $1.48 zone remains the largest cluster. Therefore, a breakout above $1.44 could truly accelerate the price upward. This makes it a key level to watch closely in the event of a short-term rally.
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