XRP Tests Key Support Levels Amid Market Volatility

According to technical analyst Skipper, XRP recently broke below the $1.93 level, signaling heightened selling pressure and ongoing market repositioning. This breakdown has kept the cryptocurrency’s downside pressure intact in the near term, with sustained trading below $1.88 being particularly critical. Spot market data shows XRP trading at $1.85 at the time of analysis, reflecting a significant drop of about 2.7% in 24 hours and more than 7.8% over the past week. The token’s choppy price action has kept it pinned below multiple resistance zones, with the next meaningful area where buyers may attempt to stabilize price sitting around the $1.85 support level.

Skipper’s analysis reveals that XRP has been in a steady downtrend since July 2025, with each price bounce weaker than the previous one. The analyst emphasized that bulls must reverse this downtrend to restore a positive outlook, which would require XRP to rise above the $2.27 high from the last weak bounce in late November. This technical deterioration comes despite XRP being one of the top-performing assets earlier in the year, highlighting how quickly market sentiment has shifted amid broader cryptocurrency weakness.

One of the most striking developments in the XRP market has been the significant contraction in circulating supply. According to Skipper’s analysis, XRP’s market supply has dropped by 45% from approximately 3.9 billion tokens at the beginning of 2025 to about 1.6 billion tokens by December. This substantial reduction in available tokens could theoretically influence XRP’s price dynamics by increasing scarcity, yet short-term price action appears more driven by technical positioning than these fundamental supply developments.

Despite ongoing Spot ETF inflows since their launch in November, Skipper noted that XRP’s recent performance has been dominated by technical factors rather than fundamental catalysts. This disconnect between improving supply fundamentals and deteriorating price action suggests that market sentiment and broader cryptocurrency weakness are currently overriding what might otherwise be positive structural developments for the XRP ecosystem.

Skipper’s analysis includes a noteworthy historical observation that could provide context for XRP’s current predicament. The analyst noted that in past cycles, when XRP breaks below the 50-week Simple Moving Average (SMA) and stays there for roughly 50 to 84 days, a strong rally typically follows. Currently, XRP has spent approximately 70 days below its 50-week SMA, placing it within this historical window where past cycles have seen significant recoveries.

In a subsequent update, Skipper reported that XRP price fell 5% as the crypto market experienced fresh selling pressure, with the token dipping to lows around $1.81. This reflects growing investor risk aversion and suggests that despite being within the historical rally window, immediate pressure remains to the downside. The analyst’s framework suggests that while current conditions are challenging, historical precedent indicates that extended periods below the 50-week SMA have previously set the stage for substantial upward moves once market conditions improve.