XRP Faces Key Support After Price Drop

Ripple’s XRP token is currently navigating a critical support juncture around the $1.25 mark, following a significant price decline. The digital asset has failed to break through the upper resistance of a short-term descending channel, indicating continued downward pressure.

The price action shows XRP retracing gains from an August rally that peaked near $1.70. It has already fallen below the 0.5 Fibonacci retracement level at $1.34 and is now testing a zone that combines the 0.618 Fibonacci retracement with a previous demand area. While a brief dip below $1.20 saw buyers step in, the daily close has yet to confirm a sustained defense of this level.

A successful hold at $1.25 could pave the way for a recovery towards $1.34 and then the $1.40 supply zone. However, a decisive break below $1.20 would expose further support levels, potentially erasing all gains made since August. On shorter timeframes, a descending channel since late September suggests a bearish short-term outlook, with a break above this pattern needed for a significant structural shift.