Ripple’s XRP has breached the critical $1.77 support level, a previously identified “make-or-break” point, turning the higher timeframe structure bearish. The cryptocurrency now threatens the April 2025 low of $1.61 amid strong capital outflows. Despite a brief bullish shift above $2.28 in early January, resistance at $2.40 held as Bitcoin‘s sell-off dampened demand. Long-term fundamentals like a new treasury and regulatory licenses may support future adoption, but technical analysis suggests further downside. Traders see a bounce to $1.85-$1.94 as a potential shorting opportunity, with moves above $1.94 needed to invalidate the bearish setup.
Ripple’s XRP failed to defend the local swing low at $1.77, a level highlighted as a “make-or-break” support. The asset now jeopardizes the April 2025 low of $1.61.
The Chaikin Money Flow remained below -0.05 to signal strong capital outflows. The Relative Strength Index briefly climbed above neutral 50 when XRP shifted its three-day structure bullishly by climbing above $2.28 in early January.
This momentum did not last, and bulls were unable to scale the $2.40 resistance. The Bitcoin sell-off meant Ripple bulls were unable to bring sustained demand.
In the long term, its strong fundamentals will help attract investor interest once more. The setting up of a Ripple treasury and securing regulatory licenses in multiple countries will foster demand for XRP and increase adoption of RLUSD, Ripple Labs’ stablecoin.
There is more space for the XRPL ecosystem to grow. XRP treasury firm Evernorth wants to put idle XRP to work through the “XRP Lending Protocol,” another development likely to see increased demand.
These strategies are more long-term in nature. For the coming weeks, technical analysis showed that more downside was likely.
The four-hour chart showed that a bounce to $1.85-$1.94 would represent a selling opportunity. Short sellers can target $1.50 and $1.39 to take profits.
The one-day and three-day price structures were bearish, giving traders more confidence when selling short. An H4 session close above $1.85 would be an early warning of bears being wrong, and above $1.94 would invalidate this setup.
A sustained rally beyond $2 would be the beginning of a recovery. XRP has lost the key support level at $1.77, flipping the higher timeframe structure decisively bearish.
