XRP Key Levels to Watch as Structure Shifts Bearish

Beyond market sentiment, the recent XRP price drop has weighed on technical structures that once favored an upside trend.

XRP, the fourth-largest cryptocurrency by market cap, is not immune to the downward momentum ravaging the digital asset sector. It has followed the broader trend, correcting nearly 3% in the past 24 hours and 28% since the start of the year.  Still, there is a risk of a further price downturn in the near term, as its structure is turning bearish.

Key Points

• Beyond market sentiment, the recent XRP price drop has weighed on technical structures that once favored an upside move.
• Despite the recent downturn, there is a risk of a further price downturn in the near term, as its structure is turning bearish following a key support breach.
• This demand trendline originated from a low of $1.34 on February 11 and has provided a base for XRP until it broke down on February 22.
• Following the structural shift, analysis now highlights the two major support areas at $1.11 and $0.87 as major downside targets.
• Still, XRP will not revisit any of these lows if it flips the $1.65 resistance level.

XRP Structure Turns Bearish

Experienced market commentator Casi floated this sentiment in her recent X post, citing a recent break below a key support level.

A shared 1-hour chart shows that this demand trendline originated from a low of $1.34 on February 11 and has provided a base for XRP until it broke down on February 22. A subsequent attempt to reclaim this zone yesterday proved unsustainable, as broader market weakness drove prices down again.

CasiTrades noted that XRP is now showing signs of bearish strength, as bulls have failed to keep selling pressure at bay. As such, she expects more downward trends, highlighting key levels to watch.

Notably, her chart once favored an XRP rebound in a broader wave-like price development. The key support recently lost stemmed from the wave (B) lows and was supposed to form the base for an XRP rebound to start the next wave of bullish price action. Dropping below the zone has now turned the former support into a strong resistance area.

Crucial Downtrend Targets

Following the structural shift, the analysis now highlights key levels to keep an eye on if XRP trends downwards. These are two major support areas at $1.11 and $0.87, identified as major downside targets.

Reaching $1.11 would see XRP drop 16.5% from the current market price of $1.33. Interestingly, this is not the first time it has dipped to the support in recent days. The coin tested the support for the first time in 15 months on February 6, but rebounded aggressively from there.

Failure to replicate such strength if XRP revisits that lower level would pave the way for the $0.87 support, a 34.5% correction from here. The chart shows that the level could be an exhaustion point before a sustained recovery.

Still, XRP would not revisit any of these lows if it flips the $1.65 resistance level. Doing so would turn the structure bullish and make the recent drop a mere false breakdown rather than the start of a deeper corrective move.