XRP has faced intense pressure after dropping below key levels of support. This decline raises concerns about a possible correction to the $1 mark. Analysts are closely monitoring ongoing price actions, particularly as trading volumes increase and technical indicators show signs of weakness.

Key Signals and Market Activity

Currently priced at around $1.88, XRP fell through the $1.93 support, which has now turned into a resistance level. Over a 24-hour period, the price has dropped nearly 6%, leading to a weekly decline exceeding 8%. Notably, trading volumes surged more than 87% in just one day, now surpassing $3.6 billion, hinting at more significant activities from large players in the market.

Crypto analyst Cheds Trading emphasized concerns about XRP potentially forming a topping pattern referred to as a ‘rounding top or M with higher high’, stating:

“Measured move to roughly MA 200 area/$1.00 range.”

Additionally, XRP has fallen below critical moving averages on its weekly chart, signaling bearish trends. The weekly Bollinger Bands are widening, indicating market volatility while prices remain under the midline. If XRP fails to maintain above $1.75, the 200-week moving average around $1.07 could come into play.

Analyst Ali Martinez highlighted that $1.92 is crucial to maintain stability, noting the consistent formation of lower highs and lows since hitting $3.65 in July, with no indications of recovery yet:

“$1.92 is the level $XRP must hold to avoid a drop to $1.”

The 4-hour chart from ChartNerd demonstrated XRP trading within a descending channel, testing the lower edge of the range between $1.87 and $1.90, overlapping a demand zone, indicating a potential for a rebound.

Increased Selling Pressure

Over the last month, an approximate total of 1.18 billion XRP has been sold by major holders, with 280 million tokens reportedly sold in just the previous week. CryptoPotato also reported surpassing $1 billion in XRP disposed of by large holders, contributing significantly to the selling pressure recently observed.

Niels pointed out liquidity on the downside has been largely taken out, and he noted that negative funding rates across exchanges signify a short-heavy market. This environment could lead to a ‘squeeze’ should momentum shift positively.

Despite some inflows into spot ETFs, XRP has lagged compared to other major cryptocurrencies, suggesting that price movements are driven more by technical selling rather than intrinsic developments.