XRP breaks below the important chart zone of $1.95, and technical analysis points to a $0.90 target

A major turning point has occurred in the XRP market. For the first time in 13 months, Ripple closed below an important technical area around $1.95. This level is not just a price zone but has served as a structural support “anchor” on the chart for the past year.

Chart Analysis Indicates a Downward Scenario

Technical analysts in the cryptocurrency market warn that this break could signal a new phase of selling pressure. Of particular interest is the support break on the two-week candlestick chart. A close below this time frame implies the loss of the lower boundary of a broader range (rectangle).

Based on technical calculations, the measured target for this breakdown is $0.90. If this level is reached, the decline from the current position could be approximately 50%. However, this target is not expected to be hit immediately; a gradual decline over several weeks is anticipated.

Gradual Downside Target Areas

During the decline, several key support levels exist. The series of decreasing price zones at $1.61, $1.42, and ultimately $0.90 will serve as anchor points on the chart analysis. However, these levels are not expected to be reached in a straight line; a time-consuming adjustment is anticipated.

In an extreme scenario, the lowest candidate for this week is around $1.42, but if Bitcoin undergoes a significant correction, further downside cannot be ruled out.

Risk Management and Rebuy Strategy

For holders who are concerned about their current positions, a risk reduction approach is suggested—selling to a comfortable level. Then, buying back when a daily close above $1.95 occurs can minimize actual losses.

Meanwhile, traders with a long-term bullish stance may see the decline as an opportunity to gradually increase their positions. In this case, continuous buying within the specified decline zones becomes the strategy.

Liquidity Environment Pressures the Downside

In addition to technical analysis, market conditions are also a crucial factor. Specifically, the decrease in trading volume during the year-end period has led to reduced liquidity. Market expectations that large capital inflows during the holiday shopping season are unlikely suggest that gentle downward pressure in a low-liquidity environment may continue.

Market participants are divided on the technical outlook, with some questioning the importance of the two-week chart. However, the $1.95 level referenced is a long-term support area marked on the chart for 13 months, and its structural significance should not be underestimated.

As of the time of writing, XRP is trading near $1.89.