Analyst Says This XRP Level Is Keeping Downside Pressure In Check
Market analysts are monitoring the price dynamics of XRP closely as it tests crucial support levels. Recent technical analyses have identified a significant price zone that may help maintain the balance against further downside pressure on XRP. Over recent months, XRP has struggled to reclaim its previous highs, suffering a notable decline as it fell below the psychological $2 mark amid heightened volatility and prevailing market uncertainty.
XRP Key Support Contains Downside Risks
Crypto analyst Skipper provided an updated technical analysis of XRP, pointing out current market conditions and essential support levels that could prevent deeper downturns. XRP recently crossed beneath the $1.93 mark, which Skipper interprets as a sign of increased selling pressure and a shift in market positioning. In the latest data from the spot market, XRP is trading at approximately $1.85, indicating a significant 2.7% drop over the last 24 hours and a more considerable decline of about 7.8% over the past week.
XRP’s erratic price movement has led to difficulty in maintaining strength against various resistance zones. Skipper highlighted that consistent trading below $1.88 keeps XRP's downside risks intact in the short term. He pointed to the $1.85 level as a potential area where buying activity could stabilize price movements.
Despite ongoing Spot ETF inflows following their launch in November, Skipper believes that XRP's immediate price trajectory appears more influenced by technical factors rather than fundamental developments. An essential aspect influencing XRP's price dynamics has been the significant contraction in its market supply. Skipper noted that XRP's supply has decreased from approximately 3.9 billion tokens at the start of 2025 to about 1.6 billion tokens by December, indicating a supply shock that could alter market scarcity.
XRP Faces Continued Downtrend Amid Market Weakness
In a follow-up to his analysis, Skipper reported that XRP experienced a 5% price drop as the broader crypto market encountered fresh selling pressure, with significant declines in many altcoins. Currently, XRP is witnessing lows around $1.81, indicating growing risk aversion among investors. This decline is notable considering XRP was one of the best-performing assets in early 2025, making its current trajectory a point of concern for traders.
According to Skipper, XRP has been in a consistent downtrend since July 2025, with every subsequent bounce showing diminishing strength. To restore a positive outlook for XRP, bulls must reverse this trend by pushing the price above the last bounce high of $2.27, observed in late November. Historical patterns suggest that when XRP consistently trades below the 50-week Simple Moving Average (SMA) for 50 to 84 days, a robust rally often follows. With XRP having spent around 70 days below its 50-week SMA, it currently falls within a historical timeframe where significant rallies have been observed in the past.
Conclusion
As the crypto landscape evolves, XRP's price movements remain under scrutiny, influenced by technical factors and market sentiment. Current dynamics suggest a critical moment for XRP traders and investors, as the interplay between support levels and market supply could dictate its near-term future.
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Disclosure: This article is for informational purposes only and does not constitute investment advice.
