A sharp plunge hits $XRP, testing the 1 dollar level! What do the latest signals reveal?

Following one of the year’s most dramatic corrections, signs that a short-term bottom may be forming in XRP are growing stronger. The asset plunged from its multi-month support around $1.30 to as low as the $1.05 to $1.10 range amid heavy selling pressure. In more recent sessions, however, the downward momentum has eased and the price has held above recent lows.

Selling pressure is losing steam

The primary takeaway from daily charts is that the downward movement appears to have temporarily paused. After breaking a major support level, sellers tried to drag XRP below the psychologically significant $1 mark, but so far that has not happened. This suggests that, at least for now, the wave of selling has lessened compared to the initial shock.

Despite this, there has yet to be a clear reversal in the overall trend. The 50-day moving average sits near $1.24, while the 100- and 200-day moving averages remain even higher. As long as the price stays below these levels, the medium-term technical outlook remains weak.

Technical signs point to a possible temporary floor

Momentum indicators now hint that the heaviest selling may be behind us. The relative strength index (RSI) plunged into oversold territory during the recent decline and has since stabilized. In technical analysis, such action is often associated with temporary bottoming rather than the immediate start of another sharp drop.

Mini glossary: RSI is a momentum indicator that measures the speed and strength of price movements. Values below 30 indicate oversold conditions while values above 70 signal overbought levels.

Trading volume paints a similar picture. Volume surged to its peak during the heaviest selling episode, reflecting panic-driven liquidations and forced sales. After these positions were cleared out, volume receded and the price failed to make new lows.

Key price levels to watch

Given the current outlook, the most likely scenario is for XRP to move sideways in the $1.05 to $1.25 band for a while. Markets rarely snap immediately from panic selling into strong uptrends. Instead, they often enter a base-building phase, as buyers and sellers seek a new balance.

On the upside, the first critical threshold is the $1.30 region, which previously acted as support. Reclaiming this level would be a key technical signal that buyers are beginning to regain control. Above that, the 50- and 100-day moving averages remain as resistance zones.

While it is possible that XRP has found a short-term bottom, whether this stabilizes into a sustained recovery will depend on the strength of buyers. At this stage, market participants are less focused on whether the panic has ended and more on whether this consolidation can trigger a meaningful rally.

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