- XRP has dropped sharply, breaking key support levels and now testing the critical $1.00 demand zone.
- Short-term trends remain bearish, with upside moves likely to face strong selling pressure.
Ripple’s XRP has faced a harsh decline recently, dropping 31% over the past month and breaking key support levels. The digital asset is no longer range-bound, with the latest price action reflecting a liquidity-driven sell-off rather than a minor correction. Traders are now closely watching the $1.00 demand zone, one of the last higher-timeframe levels where untested buy-side interest may exist.
Daily Chart Shows Structural Breakdown
On the daily timeframe, XRP broke below its recent major swing low of $1.20, confirming a structural breakdown. The subsequent sell-off was sharp and impulsive, suggesting forced selling rather than controlled profit-taking. Multiple prior demand areas were sliced through with minimal reaction, indicating that resting buy-side liquidity has largely been exhausted.
Currently, XRP is interacting with the broader demand zone near the channel’s lower boundary at $1.00. This zone is critical, as it represents one of the final levels of potential support. However, the market’s lack of meaningful absorption so far signals that sellers remain in control. Stabilization here, if it occurs, will require sustained buying interest rather than a single corrective bounce. Until the price climbs back above previous reaction zones, these now structurally acting supply levels could continue to cap any upside.
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Short-Term View: 4-Hour Chart Signals Bearish Pressure
On the 4-hour chart, the intensity of selling is more apparent. XRP aggressively approached the $1.00 threshold before experiencing a corrective bounce toward the internal supply zone around $1.50. These supply zones align with previous consolidation and breakdown points, meaning that any short-term pullback is likely to encounter renewed selling pressure.
The 4-hour trend remains decisively bearish as long as the lower-high sequence persists. Upside movements should be treated as corrective rallies rather than a reversal, highlighting the market’s continued focus on downside liquidity.
XRP’s outlook remains cautious. While the $1.00 area could provide temporary support, any meaningful recovery will require absorption of the supply overhead and a break above prior reaction zones. Until then, sellers dominate, and the cryptocurrency remains vulnerable to further declines. Traders should monitor demand zones closely for signs of stabilization and potential reversal signals, but the near-term sentiment remains heavily skewed toward the downside.
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