XRP Price Falls To Critical Support Level, Is It Time To Panic?

Markets 2025-12-18 09:39

XRP now finds itself trading around the $1.90 region due to an extensive pullback in the past 30 days. The question is now whether this pullback is a structural weakness or a necessary reset within a larger bullish structure. 

A technical analysis shared by crypto analyst Tara focuses on this exact moment, highlighting why the current level could be far more important than it looks on the surface.

XRP Tests A Macro Fib Support Zone Around $1.88

XRP’s price action in the past 24 hours saw it declining to an intraday low of $1.88, according to data from CoinGecko. However, technical analysis shows that this move has pushed the price action to a major macro support level around $1.88, which is defined by an important macro 0.5 Fib retracement on higher-timeframe charts. This zone has previously acted as a pivot, just like the bounce on November 21, which pushed the XRP price back to $2.26 within 48 hours. 

The chart included in the analysis, which is shown below, illustrates multiple Fibonacci confluences clustered between roughly $1.88 and $1.86, and this further adds to the idea that this region is structurally significant rather than arbitrary. From a price-action perspective, XRP’s current pullback has been orderly, with no sharp breakdowns below this support as of now, and sellers may be losing momentum as price compresses into this level.

What A Bounce Or Breakdown Could Mean From Here

Tara noted that moments like this tend to feel the scariest for traders, precisely because the price is sitting on support rather than moving away from it. These are the points where sentiment is weakest, and fear is most visible, even though risk-reward technically improves. 

XRP Price Falls To Critical Support Level, Is It Time To Panic?

Therefore, retesting support is not inherently bearish. Instead, repeated support tests can absorb selling pressure and create the conditions for a stronger bounce.

The most important takeaway from the analysis is not that XRP must rally immediately, but that the reaction at this level matters more than the level itself. If XRP holds above the $1.88 price level and avoids printing a decisive new low, the structure would favor a bullish continuation. 

In this case, the upside targets will be between $2.18 and $2.20. From here, any bullish follow-through could carry XRP to $2.31. These are all midterm price targets that can be achieved before the end of the year.

Momentum indicators, including the RSI, are already in oversold territory on the 4-hour candlestick chart. This indicator adds to the possibility of a clean bounce for XRP from the strong support around $1.88. At the time of writing, XRP is trading at $1.90 and is already showing signs of holding above $1.88.

On the other hand, a breakdown below $1.90 to $1.80 would invalidate the current bullish setup and redirect attention to lower retracement areas.

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This content is for informational purposes only and does not constitute investment advice.

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