XRP Price Holds Near $1.40 After Sharp Weekly Decline

Can XRP Regain Momentum Above $1.45?

XRP is trading between $1.40 and $1.45 following a steep drop from its recent high of $1.66, marking one of the token’s most significant weekly pullbacks of the year. The price movement comes after a brief rally that failed to sustain momentum above $1.70, leaving traders assessing whether the $1.40 level will act as a firm floor or if further downside is likely. Despite the retreat, technical indicators suggest underlying bullish sentiment remains intact, though the near-term outlook hinges on key support zones holding firm.

The decline traces back to a broken falling wedge pattern that had previously supported upward pressure, triggering a wave of profit-taking across the market. Trading volume increased during the drop, indicating active participation rather than passive drift, while the relative strength index dipped into neutral territory, signaling reduced overbought conditions. Analysts note that the $1.40 to $1.42 range has historically acted as both resistance and support, making it a critical juncture for determining XRP’s next directional move. A sustained close below $1.38 could open the door to retesting the $1.30 zone, whereas a bounce above $1.45 might renew attempts to challenge the $1.50–$1.55 barrier.

What Are the Key Risks to the Current Support Level?

For XRP to resume its upward trajectory, it must first reclaim and hold above the $1.45 level, which aligns with the 20-day moving average and recent minor resistance. A decisive break above this threshold could encourage short-covering and attract buyers looking for re-entry points after the pullback. Conversely, failure to surpass $1.45 may lead to renewed testing of the $1.40 support, with increasing pressure on long positions if the level fails to hold. Market participants are watching for confirmation through rising volume on any upward move, as well as broader cryptocurrency market trends that often influence XRP’s correlation with Bitcoin and Ethereum.

The primary risk to the $1.40 floor stems from broader market weakness or a shift in risk sentiment that could trigger another wave of selling across altcoins. Additionally, any negative developments in the ongoing legal proceedings involving Ripple Labs could weigh on investor confidence, despite the token’s price action having largely detached from direct news flow in recent weeks. On-chain data shows wallet activity remains moderate, with no significant accumulation or distribution spikes, suggesting the market is in a consolidation phase rather than a decisive trend shift. Traders are advised to monitor order book depth and futures funding rates for early signs of changing sentiment.

Is $1.40 a reliable support level for XRP? Based on historical price action, the $1.40 to $1.42 zone has acted as both support and resistance multiple times over the past six months, making it a psychologically and technically significant level. A break below would shift focus to lower supports near $1.30 and $1.25.

Frequently Asked Questions

Could XRP rebound to $1.66 soon? A return to $1.66 would require a strong shift in momentum, likely driven by broader market recovery and renewed buying pressure. While not impossible in the short term, such a move would first need to reclaim and hold above $1.50 with increasing volume.

What technical indicators are traders watching now? Key indicators include the 20-day and 50-day moving averages, relative strength index (RSI) for overbought or oversold conditions, and volume trends during price attempts to break $1.45 or hold above $1.40. A rising RSI above 50 during an uptick would signal growing bullish momentum.