XRP breaks through key support level, technical analysts point to a $0.90 target

XRP recently experienced a significant technical breakthrough, with Ripple falling below the key support zone of $1.95 on the two-week chart for the first time in 13 months. This level had previously served as a long-term chart anchor, and its breach marks an important structural shift.

Structural Implications of Support Breakthrough

Analysts point out that $1.95 is not just a simple mid-range price but the lower boundary of a larger consolidation rectangle. The rupture of this segi empat tepat structure opens the door to further declines from a technical perspective. On the two-week chart, this is the second time XRP has fallen below this level in over a year, the first being in April of this year.

The technical target set for the breakdown is $0.90. According to analysis, losing the $1.95 support signifies the end of the consolidation phase, and the standard for measuring the decline is officially activated. Reclaiming and holding above $1.95 becomes a key condition for a reversal.

Risk Management and Trading Strategies

For holders who feel uncomfortable with the current volatility, a risk hedging plan has been proposed: after breaking support, sell part of the position to reduce exposure to a comfortable level, then re-enter in batches once the price stabilizes above $1.95 on the daily chart or higher timeframes. This approach can significantly compress the final loss without fully exiting the market. In contrast, if the price indeed drops to $0.90, holders could face approximately 50% capital loss.

For investors seeking to buy on dips, several potential support levels are identified. Major support points include $1.61 and $1.42, with the ultimate target around $0.90, and even earlier breakout points at $0.75. Analysts also remind that the decline may not be a straight line. Given XRP has been in a steep downtrend for several weeks, it is unlikely to break all marked levels simultaneously in the short term.

$1.42 is considered the extreme downside zone for this week. Although unlikely in extreme scenarios, if support continues to break and Bitcoin also hits lower lows, such an extreme scenario is not entirely impossible.

Liquidity Pressure and Short-term Outlook

Liquidity conditions across the industry are another factor to consider. Analysts express concerns about recent market participation, noting that low liquidity environments have become problematic, and the current volatility will only exacerbate bleeding. This slow downward pressure is expected to persist for some time.

For long-term bullish investors in XRP, the strategy is to continue accumulating during pullbacks. Instead of frequent timing trades, it’s better to steadily build positions during price corrections. The current price around $2.10, combined with the breakdown of the long-term support structure, provides more entry points for accumulators.

Overall, the breach of the $1.95 support marks a turning point. The key to the subsequent trend lies in whether an effective technical stabilization can form before reaching the downside target.