XRP closed below the critical $1.90 support level yesterday, currently trading at $1.87 after rebounding from an intraday low of $1.83. The cryptocurrency has lost over 40% of its value since July, following an earlier breach of the $2.00 threshold earlier this month.
What Happened: Support Level Breach
Ripple's native token briefly dipped below $1.80 earlier in December before stabilizing above $1.90. That defense failed yesterday when the asset closed beneath the level.
Ali Martinez, a cryptocurrency analyst, noted the breakdown eliminates a crucial price floor. He warned XRP could drop to $1.10 if the support failure holds.
The token had rallied to $1.95 earlier this week following double-digit gains in prior sessions. However, the TD Sequential indicator triggered a sell signal during that move, typically preceding price retracements.
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Why It Matters: Structural Implications
Market analysts maintain XRP must hold above $1.90 to preserve its bullish technical structure. A sustained breakdown below that threshold could invalidate positive price scenarios.
Social media sentiment has turned predominantly bearish as the token's correction deepens. Santiment data suggests extreme negative commentary historically precedes price recoveries for the asset.
On-chain metrics from CW indicate large holders have shifted behavior despite falling prices. Spot taker cumulative volume delta shows buying pressure exceeds selling, suggesting whales are accumulating tokens—a reversal from the massive selling spree that began in early October.
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