XRP Risks Another 33% Drop After Breaking $1.31 Support

XRP is not looking good at the moment after falling below a key support area, and analysis suggests further downsides could follow.

XRP tested sub-$1.31 on Thursday as a fresh update on the macroeconomic front put downward pressure on the price. The altcoin fell to an intraday low of $1.281, briefly breaking down from a key support area.

Key Points

• XRP tested $1.31 on Thursday, briefly breaking down from a key support area.
• With support looking shaky, data points to a potential sharp price correction, targeting the $1.05-$1.09 range first.
• From here, a brief relief rally in the form of a wave 4 uptrend could ensue, pushing XRP toward $1.271.
• XRP could then record a final leg down to the $0.87 macro support.
• Despite the persisting downtrend, the long-term price target for XRP remains bullish.

XRP Breakdown Playing Out

Market analyst CasiTrades shared an update on the XRP price action after the recent bearish trend briefly pushed it below the 0.618 Fibonacci support at $1.310. Notably, the coin has reclaimed this level, changing hands at $1.315 at the time of writing, but momentum remains weak.

With the support looking shaky, CasiTrades expects a sharp price correction. An accompanying chart further highlighted an RSI triangle breakdown on the hourly chart, indicating that bears are in control of the market. The alignment between price and RSI leaves no room for bullish divergence, confirming that downward momentum dominates proceedings.

The analyst’s first downward target is the $1.05-$1.09 price range. The upper range closely aligns with the 0.786 Fibonacci retracement level at $1.085 and implies a 16.7% drop from the current price. Meanwhile, a weaker scenario would entail an approximately 20% decline to the range’s lower boundary at $1.05.

According to her, this move will complete wave 3 in a broader corrective Elliott Wave pattern.

Brief Relief Before Further Pullback

The $1.05-$1.09 range is not the analyst’s final downward target, but she does not expect XRP’s correction to be a straight move. When it visits this area, CasiTrades predicts a brief relief rally in the form of a wave 4 uptrend.

The accompanying chart shows that this short rebound will push XRP to the 0.50 Fibonacci level at $1.271, representing a 21% recovery from $1.05. From there, the market watcher expects one final leg down.

Meanwhile, the target for this final downturn is the $0.87 macro support, aligning with the 0.854 Fibonacci retracement level. Notably, this culminates in a 33% drop from the current market price.

This has been Casi’s long-standing target for the current downturn, as she has repeatedly marked the dip as a necessary event before XRP can flip the bearish trend.

Bullish Targets When Downtrend Ends 

Despite the persisting downtrend, the long-term price target for XRP remains bullish, so much so that CasiTrades views $6 as conservative. Last month, she suggested that, after waiting for 8 years, the $3.6 ATH is unlikely to be XRP’s peak price, urging holders to raise their expectations.

In a separate analysis, she claimed that factors are aligning to take XRP’s price to $80 per coin. Other analysts, such as EGRAG Crypto, also share similar ambitious targets for XRP in the mid- to long term. The analyst sees XRP reaching $27, citing a breakout from a multi-year triangle.