Market analysts believe that XRP▲$1.13 is about to go through one of the biggest technical events, and the current correction could be just the start of a powerful rally.
Despite the continued selling pressure, the token failed to keep up with Bitcoin and most of the altcoin market, but some traders argue that the overall bullish structure remains intact.
According to crypto analyst ChartNerd, it has not been easy to remain bullish on XRP through this latest drop, but the decline was just a round of profit-taking in a market cycle. The decline was not an indication of the long term price outlook for the cryptocurrency, and the focus should be on the technical setup.
At the moment, XRP is trading back at the key support level of $1.06 after it failed to hold above the 20-day EMA at around $1.08. There is also resistance near the 50-day EMA at $1.12. A sustained move above $1.16 would indicate that buyers have resumed upward momentum.
ChartNerd, in addition to this, pointed out that XRP had tested critical support within a falling wedge pattern that had held the price for almost six years.
Historically, some sharp rebounds have taken place during such phases, the analyst said, but under current market conditions, a short-lived dip past the psychologically important level of $1 could not be ruled out.
Read More: Why Is XRP Underperforming? 3 Reasons Ripple Still Can’t Catch Up With the Crypto Market
While he did not consider this indicative of a bear market, he believed it might be one of the strongest accumulation opportunities ahead of the next recovery.
This is in line with a prediction by analyst EGRAG CRYPTO, who said that $1.05 was the next level to watch for bulls and bears: a bounce could extend to $1.10 and more, while a drop could trigger a quick descent to the $1 mark that ChartNerd suggested.
At the time this article was published, XRP was trading around US$1.07. The token had increased in value by approximately 0.5% in the preceding 24 hours, and by approximately 1.5% over the preceding week. However, its value had fallen by around 24% over the preceding three months, and was more than 70% lower than its all-time high of around $3.65 in July 2025.
Read More: Best Crypto Tokens Under $1 to Buy in August 2026 Before the Next Altcoin Rally
Despite the relatively low price, Ripple persists in investing in its ecosystem, including two recent investments in two companies, Zilo and Licuido, which provide tokenized fund services and institutional digital asset services, respectively.
Institutional flows have continued to be basically positive. Spot XRP-based exchange-traded funds saw $27M in inflows throughout July, down from $60M in June and $132M in May. The data suggests that professional capital may still be looking at the asset, with XRP continuing to fail at holding the gains it made during its mid-July rally.
