XRP Price Dips Below $1.42, Tests Key Support at $1.34

XRP price action has turned negative following a rejection at the $1.55 resistance level. According to data from the Kraken exchange, the XRP/USD pair initiated a downside correction, mirroring broader market weakness seen in Bitcoin and Ethereum. The decline saw the price drop below the $1.50 and $1.48 support levels, entering what the analysis describes as a ‘negative zone.’ This move also took the price below the 23.6% Fibonacci retracement level of the prior upward swing from a low of $1.1356 to a high of $1.5435.

The technical structure has weakened considerably. The price is now trading not only below $1.42 but also beneath the 100-hour Simple Moving Average, a key short-term trend indicator. This positioning below the moving average typically signals that bearish pressure is dominating the near-term trend. The formation of a declining channel on the hourly chart, with clear resistance established at $1.430, further confines the price action to a bearish pattern, limiting upside attempts.

For traders, the immediate battle lines are clearly drawn. On the upside, any recovery attempt will first face resistance at the channel boundary near $1.430. A break above that could target the $1.450 level, which now acts as a major resistance. A decisive move above $1.50 is needed to shift momentum, with subsequent targets at $1.545, $1.625, and ultimately $1.720.

The downside, however, presents more immediate concern. The first major support is clustered around the $1.340 level. This zone is significant not only as a psychological price point but also because it aligns with the 50% Fibonacci retracement level of the aforementioned upward move from $1.1356 to $1.5435. A failure to hold $1.340 could see the XRP price test the next major support at $1.30. A close below $1.30 would likely accelerate selling, potentially pushing the price toward $1.240, with further major support sitting near the $1.20 zone.

Supporting the negative price structure, key technical indicators are flashing warning signs. The hourly Moving Average Convergence Divergence (MACD) for XRP/USD is gaining pace in bearish territory, indicating that downward momentum may be strengthening. Concurrently, the hourly Relative Strength Index (RSI) is trading below the 50 level, a classic signal that selling pressure is currently outweighing buying interest.

This confluence of factors—price below key moving averages, a bearish chart pattern, and negative momentum indicators—paints a cautious short-term picture for XRP. The analysis suggests that unless the price can reclaim the $1.50 resistance zone, the path of least resistance remains to the downside. Traders and investors are thus closely monitoring the $1.34 support level; a breach here would validate the bearish technical setup and likely open the door to a test of lower support levels, beginning with $1.30.