XRP News Today: XRP's Support Zone Under Fire as Analysts Clash Over Downward Spiral

XRP has slid into a critical support zone as selling pressure intensifies, with analysts split on whether the cryptocurrency has found a floor or faces further declines. The token recently reclaimed the $1.96 level-a former 2021 resistance-that now acts as a key support area. However, on-chain data and technical indicators suggest intermediate risks remain, with some experts predicting a potential 50% drop toward $1.25.

The recent price action reflects a mix of resilience and fragility. XRP's consolidation above $2.02–$2.06 aligns with a historical order block formed during the 2021 resistance breakout, adding statistical weight to its support. Yet, whale selling has exacerbated downward momentum, with nearly 200 million XRP dumped over 48 hours, triggering acute supply pressure. This selling wave pushed XRP to a three-session low of $1.91, testing the $1.90–$1.91 support zone.

Technical analysis highlights conflicting signals. While the Ichimoku Cloud indicates a bullish bias (price above the cloud), short-term weakness is evident as XRP trades below the Tenkan-Sen and Kijun-Sen lines. The RSI at ~58 suggests neither overbought nor oversold conditions, signaling a potential momentum reset rather than a reversal. Fibonacci retracement levels also complicate the outlook: a break above $2.18–$2.36 could target $3.00, but failure to hold $2.02 risks a decline toward $1.90.

Bearish scenarios gain traction from deteriorating network activity. Daily active addresses have plummeted 91% since mid-June, while new user growth has stalled. These trends underscore waning engagement, compounding pressure on liquidity and price stability. Meanwhile, short-term holder metrics flash capitulation signals. The net unrealized profit/loss for short-term holders hit –0.30, the lowest reading of 2025, yet a recovery remains elusive due to incomplete washout in spent coins data.

Expert predictions diverge sharply. Some argue XRP's structural strength could catalyze a rebound if bulls reclaim $2.08 and $2.26, invalidating the near-term bearish trend. Others warn of deeper declines, with one analyst forecasting a 55% slump to $1.00 as a "capitulation" scenario. The 100-day exponential moving average (EMA) approaching the 200-day EMA also raises concerns about a bearish crossover, which could accelerate selling.

Market-wide factors amplify uncertainty. Bitcoin's weakness below $90,000 has pulled altcoins into volatility, while institutional flows remain mixed. Bitwise's new XRP ETF saw $25.7 million in first-day volume, signaling demand, yet macro crypto outflows persist. Traders are advised to monitor key levels: a daily close above $1.96 would neutralize the descending channel, while a breakdown below $1.90 could expose XRP to a fast decline toward $1.73.