XRP Price Faces Potential Downturn: Could It Dip to $0.90 Amidst Growing Bearish Sentiments?

XRP’s latest price movements in the past few days have left optimistic traders disappointed, with its price falling to $2.10 and struggling to trade above $2.20. Although the general sentiment in the cryptocurrency market remains fairly neutral, there persists a potential for a bearish outlook for XRP that could reduce its price down to $0.93, if not lower.

Based on a technical review on the TradingView platform, XRP’s price configuration is testing crucial technical formation areas, and a breakdown may ensue.

Potential Breakdown of XRP Price Structure

The analysis details a price configuration where XRP finds itself caught between descending resistance and horizontal support lines, with the $2.13 area functioning as a cushion. Above it sits the $2.58 resistance, which has proven challenging to surpass despite several attempts. A breakout above this zone could induce bullish momentum, yet thus far, XRP has struggled to clear it convincingly.

On the downside, should XRP fail to uphold its current position and fall below $2, a movement toward the lower demand floor at $0.93 becomes more probable. However, this is not guaranteed, as robust demand levels around $1.708 and $1.4248 could prevent any further drop. These represent the optimal price zones to purchase XRP.

The weekly candlestick timeframe chart below emphasizes historical accumulation zones around $1.708, $1.4248, and $0.9329, which may act as touchpoints for a rebound, provided that sellers do not dominate buyers at these levels.

Robust Fundamentals Confront Short-Term Bearishness

In spite of the technical dangers of a price drop, XRP’s fundamentals are solid. Ripple’s settlement with the U.S. SEC earlier this year removed a significant regulatory cloud, clarifying that XRP is not considered a security for retail investors. This legal clarity has paved the way for institutional interest, particularly as speculation grows around the SEC validating a Spot XRP ETF. Numerous companies, including Bitwise and Grayscale, have already lodged applications, and analysts anticipate a resolution by the end of the year. Polymarket data indicates an 83% likelihood of approval in 2025.

Simultaneously, Ripple is upgrading the XRP Ledger (XRPL) to accommodate more advanced financial applications. These enhancements aim to make the network appealing to banks and institutional users.

If the bullish trajectory materializes and every optimistic fundamental aligns, bullish price forecasts will range from $2.85 in the near term, $5.50 by year-end, and ambitious targets soaring as high as $10-$20 by 2030.

Nevertheless, fundamentals do not consistently shield a token from corrective movements, particularly in a high-volatility environment like cryptocurrency. Should any technical breakdowns occur, they can overshadow positive sentiment in the short term, and XRP may decline as low as $0.93. At the time of writing, XRP is trading at $2.18.

Featured image from Getty Images, chart from Tradingview.com

Editorial Process for bitcoinist revolves around providing meticulously researched, precise, and impartial content. We adhere to rigorous sourcing standards, and each page undergoes thorough assessment by our team of leading technology experts and skilled editors. This process guarantees the integrity, relevance, and value of our material for our audience.