XRP Plunges to Crucial $1.88 Support: Panic or Opportunity?
XRP has experienced a significant pullback over the past 24 hours, dropping to an intraday low of $1.88, according to CoinGecko data. This decline has pushed the cryptocurrency to a critical macro support zone, sparking debate among investors about the asset's immediate future. Crypto analyst Tara highlights that this $1.88 level, defined by a macro 0.5 Fibonacci retracement, has historically served as a pivotal point for XRP.
XRP’s Key Battle at $1.88
The current price action is testing a crucial support zone around $1.88. This level previously demonstrated its significance on November 21, when XRP bounced dramatically from it to reach $2.26 within 48 hours. While the recent dip might appear alarming, technical analysis suggests that the pullback has been orderly, with no sharp breakdowns below this support. This indicates that sellers may be losing momentum as the price compresses into this critical area.
What Lies Ahead: Bounce or Breakdown?
Analyst Tara notes that such moments often induce fear among traders, precisely because the price is resting on support rather than moving away. Paradoxically, this is when the risk-reward dynamic for a potential bounce technically improves. Repeated tests of a support level can absorb selling pressure, paving the way for a stronger rebound. Momentum indicators like the Relative Strength Index (RSI) are already signaling oversold conditions on the 4-hour chart, further reinforcing the likelihood of a bounce from this strong support. The decisive factor for XRP will be its reaction at the $1.88 level. If XRP successfully holds above $1.88 and avoids printing a decisive new low, a bullish continuation is anticipated. Potential upside targets are projected between $2.18 and $2.20, with a further follow-through capable of pushing XRP to $2.31 before the year's end. Conversely, a breakdown below the $1.90 to $1.80 range would invalidate the current bullish outlook, redirecting focus to lower retracement areas and signaling a shift in market sentiment. As of writing, XRP is trading around $1.90, showing early signs of holding above the critical $1.88 threshold.
