XRP’s 69% Drop Sparks Panic, But Analysts See Bullish Setup

The recent 69% drop in XRP’s price from its $3.66 high has undeniably sparked fear across the cryptocurrency market. The token broke down from the key $2 support zone and is now trading around $1.39. Yet, according to analyst Crypto Patel, the bigger technical picture remains unbroken. XRP is currently retesting what he describes as a higher-timeframe demand level. This level previously acted as the upper boundary of a multi-year accumulation range, placing the asset at a technically significant juncture.

This sharp correction is viewed by some, including Patel, as forming a classic breakout-and-retest structure. The narrative gains historical context when considering XRP’s past behavior. The last time the token experienced a similar deep correction, it was followed by an explosive 835% rally. This precedent raises a critical question for traders: is the current panic merely marking another major turning point? The technical setup, as outlined, still favors a larger upside rotation rather than a full trend reversal, provided critical support levels hold firm.

On-chain data from Santiment adds a compelling layer to the technical story. Ripple just recorded its largest spike in realized losses since November 2022, with $1.93 billion in weekly losses as holders capitulate. In cryptocurrency markets, such extreme capitulation events have frequently signaled local price bottoms. This mass exit by weaker hands often creates conditions where larger, more strategic players begin accumulating assets at depressed prices.

Crypto Patel has pinpointed a specific price range as the linchpin for the bullish thesis: a key support zone between $0.86 and $0.66. This area is not arbitrary; it represents a confluence of a multi-year breakout retest and a historical accumulation range, reinforcing its significance as a strong demand zone. Patel emphasizes that maintaining a price above $0.66 is absolutely critical for preserving the broader bullish outlook. The combination of the major capitulation event and price testing this higher-timeframe support creates what he views as a high-probability area for a potential reversal.

However, the analysis includes a clear invalidation point. A weekly close below $0.66 would signal a structural breakdown and completely negate the current bullish thesis. This establishes a clear risk parameter for traders monitoring the setup, defining the line between a healthy retest and a more serious trend failure.

If XRP successfully holds the critical $0.86–$0.66 support zone, the technical structure suggests the possibility of a significant upward move. Crypto Patel describes the current price action as trading within a “generational re-accumulation zone” following the breakout retest. From this foundational area, he outlines a series of ascending price targets that offer a roadmap for a potential bull run.

The initial upside projections are set at $2 and $3, which would represent a recovery to and beyond recent highs. More ambitious targets follow at $5 and ultimately $10 and above. A move to the upper end of this range from the accumulation zone would constitute a near 10x appreciation. This outlook hinges entirely on the structure holding and bullish momentum returning to the market. For now, analysts argue that while panic is palpable at the $1.39 level, the confluence of extreme on-chain capitulation and a test of a multi-year technical support zone may be quietly setting the stage for XRP’s next major chapter.