XRP dropped 6% to $1.88 during Monday's market correction, falling below its $2.00 support level and testing crucial price boundaries that have held since November 2024. Analysts warn the cryptocurrency must defend current levels or risk a significant breakdown to $1.00.
What Happened: Support Breach
The digital asset lost its $2.00 threshold Monday morning and continued declining despite sustained institutional interest. XRP has traded within a $2.00-$2.25 range over the past month, only breaking below during late November's pullback.
Monday's correction pushed the cryptocurrency below this range again, hitting a multi-week low of $1.88.
The price bounced near the $1.85-$1.90 zone, an area that has provided support after every major correction since the November 2024 breakout.
Market analyst Ali Martinez noted XRP fell below its one-year price range of $1.92-$3.27, which could trigger a 50% decline if the area fails to hold.
Martinez stated the cryptocurrency needs a daily close above $1.92 to prevent a drop to $1.00 support, a level not seen in over a year.
Cheds Trading warned XRP is "flirting with a high time frame breakdown," identifying a potential rounding top or double top pattern with a higher high. The analyst said a break below $1.88, where the pattern's neckline sits, would confirm an M formation and lead to a "measured move to roughly MA 200 area/$1.00 range."
Also Read: Analyst Notes Current Bitcoin Metrics Mirror 2018 Pre-Decline Conditions
Why It Matters: Recovery Potential
Some analysts maintain a bullish outlook despite the warnings. Trader Niels said XRP is "looking good" at current levels, noting the cryptocurrency is "sweeping the $1.8 support zone again" while showing bullish divergence on the daily timeframe.
Niels projected that once XRP breaks above $2.20 resistance, it could surge 27%-37% toward the $2.80-$3.00 range "within a month."
Analyst ChartNerd observed XRP appears to be repeating its 2023-2024 price action, which preceded its November 2024 breakout.
ChartNerd's analysis shows the cryptocurrency accumulated for 18 months, bouncing between range boundaries before its markup phase in late Q4 2024. He stated, "Regardless of scenarios, or how ugly/beautiful it gets, a massive markup phase similar to November 2024 is likely between now and late 2026."
XRP traded at $1.93 as of press time.
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