Analyst Warns XRP Could Drop to $1.55 If Support Level is Broken

XRP has seen a decline of 4.08% over the last 24 hours, mirroring the trends in the broader cryptocurrency market as the US announced a potential 50% tariff on goods imported from the European Union. In light of this downturn, notable market analyst CasiTrades has pointed out that XRP may face further decreases if it fails to maintain a critical support level.

XRP Needs to Hold Above $2.25 – $2.26

Last week, as Bitcoin reached a new all-time high, XRP soared to $2.45 but then faced a price rejection due to the adverse macroeconomic conditions related to the recently announced international tariffs by the US.

During the day, XRP saw a significant drop of over 5%, falling from $2.45 to $2.33, before stabilizing into a sideways pattern as observed in recent hours. CasiTrades indicates that this rejection corresponds with a 1:1 Fibonacci extension pertaining to the corrective C-wave in the Elliott Wave Theory, suggesting potential exhaustion from the earlier relief rally.

The analyst cautions that if XRP continues to drop, it may revisit a “major structural support” in the $2.25 – $2.26 range, which corresponds to the Fibonacci retracement level of 0.382. CasiTrades notes that this specific Fib level has been a crucial technical point over the last six months.

A breach below this threshold could lead to more severe corrections, potentially driving XRP down to the $1.55 – $1.90 range, effectively erasing all gains achieved since the crypto market began its upward trajectory in early April. Conversely, if the support zone at $2.25 – $2.26 holds firm, it could pave the way for a new rally, possibly pushing prices to around $2.70 and higher, eventually leading XRP back to its local peak of $3.84 during the current bull run.

XRP Price Summary

At present, XRP is trading at $2.33, reflecting a 1.45% drop over the past week. However, over the last month, the altcoin has increased by 9.77%, indicating that most new market participants are still enjoying profits.

Additionally, it’s worth noting that Volatility Shares launched an XRP futures exchange-traded fund (ETF) on May 22, which is a 1x fund designed to track the daily performance of XRP futures contracts without leveraging.

With a market capitalization of $233.58 billion, XRP occupies the position of the fourth-largest cryptocurrency and the third-largest altcoin in the market.