XRP Price News: Big Drop to $0.80 Expected If Key Support Falters

XRP (XRP) dropped sharply yesterday, alongside the entire crypto market, as cascade liquidations jumped past $1.50 billion.

The token’s year-to-date losses now sit at 33% and, although XRP is not the worst performer among its peers, the latest decline is increasing the odds of a major correction if a six-year pattern snaps.

Trading volumes jumped by 56% in the past 24 hours, indicating rising selling pressure. At $3.4 billion, they currently account for 4.4% of the token’s circulating market cap.

XRP ETF Net Inflows Have Been Positive for 21 Days in a Row Despite the Pullback

Sentiment has soured in the past few days, as geopolitical tensions in the Middle East are rising.

It has been weeks since the United States picked up its negotiations with Iran, but no deal has come out of the table, and both parties have threatened to escalate their actions to force each other’s hand.

Moreover, President Donald Trump threatened to raise tariffs on 60 countries to curb the impact of unfair practices, including “forced labor.”

The market reacted a bit extremely to the news, but that’s what you would expect during a bear market. Sentiment readings like the Crypto Fear and Greed Index took a big hit this week, dropping to 26 – near ‘Extreme Fear’ territory.

Despite these headwinds, inflows to exchange-traded funds (ETFs) linked to XRP have continued to receive net inflows from investors.

These vehicles have booked a 21-day streak of deposits. Its net assets currently sit at $1 billion, while cumulative net inflows stand at $1.4 billion. It appears that Wall Street continues to see a bright future for this altcoin despite its latest setback.

Weekly Buy Signal Still Valid Unless XRP Drops Below $1.10

Heading to the charts, we have been focusing on the weekly time frame for a while, as a major buy signal emerged recently as the Relative Strength Index (RSI) plunged below 30.

The last three times this has happened, XRP has rallied strongly, delivering gains between 208% and 1,480%.

However, today’s drop is putting XRP on track to retest its cycle lows at $1.10. This would mean a 10% drop in the near term. A retest like this has happened in previous instances, but the price action has never broken below it.

If we lose that key support, we believe that a drop to $0.80 would be imminent. This would translate into a downside risk of 27%.

However, if that demand zone holds, we see XRP rising to $3.50 in the mid-term and a much stronger rally to $5.40 – $6.00 in the long term if this signal unfolds as expected and performs similarly as it has in the past.

Our Latest Prediction is On Track to Hit Its Target

In our latest XRP price prediction, we shared an interesting trading opportunity that should supposedly yield a 3x return.

The signal was activated when XRP dropped below $1.32 and is already in positive territory. We see the token dropping to $1.13 in the near term if the pullback continues.

However, the RSI just neared oversold territory, which increases the odds of a technical bounce. Hence, the price action could still retest $1.32 from below, which means that you might get the chance for a late entry.