XRP Price Analysis: Breakdown Risk After Failed Rally — Is a Drop to $1 Next?

XRP just delivered one of its most volatile stretches of the year, and traders are now zeroing in on the charts to understand the latest XRP price analysis.

Following a brutal 36 percent crash in October and a failed relief rally, XRP is struggling to maintain its breakout level while technical indicators send mixed signals.

The next move could determine whether XRP continues to rebound or instead collapses toward levels not seen all year.

XRP Price Analysis

The XRP price crashed by 36% on Oct. 10, briefly falling to a low of $1.77.

It regained its footing afterward, creating a massive lower wick and even hitting $2.70.

However, the recovery did not last.

Right after the bounce, the XRP price crashed again, creating a descending wedge pattern.

The charts show that the trend shifted again on Nov. 21 (green icon), triggering a breakout from the wedge.

Even that did not last, however, since the XRP price failed at the 0.5 Fibonacci retracement resistance level (red icon).

Now XRP trades dangerously close to invalidating the wedge entirely.

Will the XRP Price Crash?

The price movement in the last two months is concerning, but it is nothing in comparison to the one since the start of the year.

XRP’s price had traded inside an ascending parallel channel, but broke down from it in November.

A breakdown of such a long-term structure means that the trend has shifted.

In the case of XRP, it warns of a prolonged downward movement that could lead to a sharp decline.

Today, the only thing preventing the XRP price from going lower is the $2 horizontal support area.

If that fails, the XRP price could plunge.

Due to the lack of support below, XRP could return to $1 if it closes below its current level.

XRP News Recap

Adding to the bearish price action, there is some bearish XRP news that could lead to a decline.

Ripple Labs moved 250 million XRP from one of its escrows to an unknown address.

Since the destination address is not associated with a cryptocurrency exchange, the purpose of the transfer remains unclear.

While the transfer raises concerns, the XRP is unlikely to enter market circulation immediately.

As a result, it does not raise fears of a sell-off.

On the other hand, XRP has recorded $245 in investment inflows, driving a $716 million revival in crypto investments.

As a result, while the price action is decisively bearish, the news surrounding XRP is mixed.

What Happens Next for XRP?

XRP sits at one of the most crucial levels of the year.

• A bounce above $2.00 could revive bullish sentiment and validate the earlier breakout from the wedge.
• A drop below $2.00, however, would likely confirm a long-term breakdown and open the door to a fall toward $1.00, or even lower.

Until XRP reclaims lost support levels with conviction, the broader XRP price analysis remains bearish, and traders should brace for volatility.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

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