XRP traded near $1.92 on December 17 after recovering from recent lows. However, analysts warn that the recovery stays fragile. Several market observers say the token must defend current levels to avoid a much deeper correction, although others point to early signs of accumulation and longer-term recovery potential.
XRP/USD 1-day price chart. Source: TradingView
XRP fell nearly 6% in the course of the market decline earlier within the week, briefly losing support at $2.00 and sliding to a multi-week low near $1.88. The move pushed the token below the lower limit of its one-month trading range of $2.00 to $2.25.
The $1.85-$1.90 area has acted as a key support area since XRP's November 2024 breakout, with the value recovering from this region after each major correction. However, analysts warn that repeated tests weaken support over time.
Analysts warn of a 50% downside if support is broken
Technical analyst Ali Martinez said that XRP has now slipped below its one-year trading range, which he puts at between $1.92 and $3.27. According to Martinez, XRP must secure a each day close above $1.92 to avoid a deeper downtrend.
Source: X
If this level just isn’t reached, Martinez warned that the XRP price could return to the $1 area, meaning a possible 50% decline from current prices – levels last seen in early 2024.
Similarly, Cheds Trading said that XRP is nearing a “timeframe collapse.” He pointed to a possible rounding top or double top formation and noted that a confirmed lack of $1.88, where the pattern's neckline is positioned, could open the door for a measured move toward the 200-day moving average near $1.
Source: X
Optimistic analysts see accumulation, not collapse
Despite the caution, other traders argue that XRP is more prone to stabilize than collapse. Trader Niels said that XRP is once more pushing liquidity near the $1.80 support zone while also showing bullish divergence on the each day chart, a situation that will precede relief rallies.
Niels said a break above $2.20 could send XRP up 27-37% and goal the $2.80-3.00 range inside a couple of weeks if overall market conditions improve.
Source: X
Another analyst, ChartNerd, noted similarities between XRP's current structure and its 2023-2024 accumulation phase, which preceded the strong breakout in late 2024. He suggested that XRP could proceed consolidation before entering a brand new markup phase.
No matter how ugly or constructive the consolidation gets, a serious bounce just like November 2024 could still play out between now and the top of 2026.
ChartNerd said.
XRP ETF inflows fail to shift weak market structure
The mixed outlook comes despite regular inflows into spot XRP ETFs, which posted positive closes for 18 consecutive days. Analysts warn that ETF demand alone has not led to sustained price strength.
Market commentator Efloud said XRP's chart structure stays weak, noting that the token has lost key each day imbalance zones. He added that the upward move is prone to be short-lived unless XRP reclaims key resistance levels, including $1.98.
Efloud also said that the $1.53 area could emerge as a possible accumulation zone if selling pressure increases, although he emphasized that that is more of a hypothetical scenario than a price goal.
