XRP tumbled to $1.81 amid fresh market selling pressure, testing critical support zones that have historically sparked strong rebounds. Technical indicators show the asset approaching oversold territory.
The cryptocurrency market witnessed fresh turmoil as XRP tumbled to $1.81, marking a significant decline that has investors questioning whether the digital asset can reclaim its previous momentum. The token shed 5% amid broader market selling pressure, with major altcoins extending their recent declines.
XRP currently trades around $1.88, reflecting the ongoing volatility that has characterized the asset's recent price action. The descent to lows of $1.81 represents a critical juncture for the Ripple-backed token, which earlier in the year ranked among the top-performing cryptocurrencies.
Historical Support Battles Fresh Selling Pressure
The current price action has brought XRP back to a pivotal demand zone that previously sparked strong rebounds. According to ChartNerdTA on X, the digital asset has returned to a key liquidity zone that has been respected multiple times in its trading history. The analyst emphasized this represents a critical area where buyers must either step in to trigger another reaction bounce or risk a breakdown if demand fails to materialize.
A bearish trend appears to be developing, though ChartNerdTA noted on X that strong historical support at current levels could establish the foundation for a potential rebound if buying interest emerges. The analyst warned that a break below $1.80 would signal bearish continuation, while reclaiming the $2.00 threshold could indicate a potential reversal. Wicks below support levels remain acceptable within normal trading parameters.
The decline marks a continuation of weakness that began in July. According to skipper_xrp on X, the token has maintained a steady downtrend since mid-year, with each price bounce proving weaker than the preceding one. Bulls must break this pattern to restore a positive market outlook, requiring prices to climb above the $2.27 high from the late November bounce.
Technical Indicators Signal Oversold Territory
Market technicals suggest XRP may be approaching a turning point. CryptosR_Us highlighted on X that the weekly Relative Strength Index has dropped to 33, signaling the asset is nearing oversold territory. Historically, such levels have preceded strong bounces, potentially offering a buying opportunity for investors as broader cryptocurrency sentiment shows signs of stabilization.
The RSI reading carries particular significance given historical patterns. According to skipper_xrp on X, every cycle when XRP breaks below the 50-week Simple Moving Average and remains there for roughly 50 to 84 days, a strong rally has typically followed. The price has now spent approximately 70 days below its 50-week SMA, placing it squarely within the same historical window that preceded previous surges.
Despite the technical debate intensifying around price action, Ripple continues expanding its ecosystem. On December 16, the company announced that RLUSD will expand to Optimism, Base, Ink, and Unichain. The stablecoin leverages Wormhole's Native Token Transfers standard for multichain interoperability, representing a significant development in Ripple's broader strategy.
The expansion comes as the company works to establish RLUSD as a regulated and stable digital currency option. The stablecoin's deployment across multiple blockchain networks demonstrates Ripple's commitment to building infrastructure that extends beyond XRP itself, though the native token could benefit from increased ecosystem adoption.
Current market conditions present both risks and opportunities for XRP holders. The token must defend key support levels to prevent further deterioration in sentiment. A sustained break below $1.80 would likely trigger additional selling pressure and potentially accelerate the downtrend that has persisted since July.
Conversely, a successful defense of current support could set the stage for a meaningful recovery. The combination of oversold technical indicators, historical support zone proximity, and ongoing ecosystem expansion creates conditions where a reversal remains possible if buying pressure emerges.
The cryptocurrency faces near-term pressure from multiple sources. Year-end profit-taking, a strengthening U.S. dollar, and broader risk-off sentiment in digital assets have all contributed to selling pressure. Trading volume remains elevated at significant levels, indicating continued market participation despite the decline.
The next several trading sessions will prove crucial in determining whether XRP can stabilize and mount a recovery or if further losses lie ahead. Investors are closely monitoring the $1.80 level as a line in the sand, with breaks below potentially opening the door to deeper declines. Meanwhile, reclaiming $2.00 would represent an important psychological victory for bulls attempting to reverse the recent downtrend.
Key Takeaways:
- XRP declined 5% to $1.81, testing critical demand zones that previously triggered strong rebounds from sellers
- Weekly RSI dropped to 33, signaling oversold territory where historical bounces have occurred in past cycles
- Bulls must reclaim $2.00 to reverse downtrend; break below $1.80 signals continued bearish momentum ahead
Stay updated on the latest cryptocurrency news on our homepage.
Explore more in XRP News Category.
Related reading:
Key Topics
Crypto New Live
admin@cryptonewslive.org
XRP Plunges to $1.81: Critical Support Test
XRP drops 5% to $1.81 as analysts warn of make-or-break moment. Weekly RSI hits 33 signaling oversold conditions. Key support zones face crucial test.