In recent trading sessions, XRP witnessed a notable setback, dipping below the critical threshold of $1.40 after attempting to rally around $1.60. This situation is drawing attention as market participants closely monitor its technical framework, which has seen a substantial depreciation exceeding 60% since the peak in July 2025.
Market analysts suggest that the recent rejection during an upward movement serves as an indicator that downward momentum remains dominant. This has placed the asset in a precarious position, with analysts warning that another decline could push XRP down to lows around $0.75.
The Impact of Rejections on Altcoins and Market Sentiment
XRP experienced a slight uptick at the commencement of the previous week, hitting approximately $1.60. However, this upward momentum proved to be short-lived, and the price quickly reversed, leading to further declines below $1.40. Traders noted the significance of this shift, especially as it indicated a lack of support when prices failed to stabilize after their brief surge.
This rejection is crucial as it occurred within a broader descending channel, originally forming after XRP’s peak above $3.65 last year. Historically, attempts to recover within this channel have consistently resulted in price retracement, with the current trajectory suggesting a repeat of this pattern as XRP nears the lower boundary of the channel.
Respected analyst Guy on the Earth highlights the crucial price range of $1.34 to $1.36 as a potential support level. This zone holds significance due to its dual role as both a lower boundary for recent trading patterns and a critical support area relative to the prevailing downtrend.
XRP’s Downward Trajectory: What Lies Ahead?
The analyst posits that if XRP falls beneath the $1.34 to $1.36 threshold, it could prompt a swift move towards $1.20. It is important to note that this potential decline may not be straightforward, as it could result in abrupt price movements and significant fluctuations in the upcoming sessions.
Furthermore, the analysis suggests a more severe downward shift, especially if XRP breaches the $1.20 support level. The extended channel support lies beneath the $1.00 mark, indicating a continued descent. In such a scenario, XRP could witness a drop to as low as $0.75. It is essential for traders to remain vigilant about this possibility.
Nevertheless, there remains a chance for XRP to experience a temporary rebound from its present levels, potentially moving back to $1.50 and retesting the upper boundaries of its recent trading range. Presently, as XRP is trading at $1.37, it has experienced a decline of 2.2% within the last 24 hours, alongside a 7.4% drop over the past week.
