XRP Faces Another Test of the $1 Support Level as Momentum Fades

The psychologically significant $1 mark remains the most closely watched price level for XRP, the native token of the Ripple payment network used for cross-border settlements. The token has once again slipped into a technically vulnerable position. After multiple failed recovery attempts over the past month, bullish momentum has faded, leaving XRP trading near $1.07 with limited cushion before the next major support test.

XRP's price action unfolds against a backdrop that continues to be shaped by the U.S. Securities and Exchange Commission's long-running case against Ripple. The July 2023 court ruling that programmatic XRP sales on public exchanges did not constitute securities offerings provided a notable boost at the time, but the legal proceedings — including ongoing remedies discussions and the broader regulatory debate — remain a factor that market participants continue to monitor alongside technical signals.

XRP Remains Below Key Moving Averages

XRP continues to trade beneath several major exponential moving averages (EMAs), including the 26-day, 50-day, and 100-day EMAs. The 200-day EMA sits considerably higher at $1.39, underscoring that the longer-term trend has yet to turn around. Since early June, each rally has lost steam below these declining moving averages, forming a pattern of lower highs that keeps sellers in control.

Recent price action has been notably lacking in conviction. Trading volume has contracted steadily over the past two weeks, suggesting that both buyers and sellers are waiting for a clear catalyst. At the same time, XRP has consolidated within a narrowing band just above support — a formation that often precedes a larger directional breakout.

Momentum indicators paint a similarly neutral picture. The Relative Strength Index (RSI) sits at approximately 45, placing XRP in neither overbought nor oversold territory. While this leaves room for a rebound, it also indicates that sellers have sufficient headroom before technical conditions become stretched.

Can XRP Defend Key Support?

The critical zone over the coming seven days lies between $1.00 and roughly $1.03. This area has attracted buyers on multiple occasions since the sharp sell-off in June. If XRP can hold above this band once more, a recovery toward the 50-day EMA at $1.10–$1.12 becomes a possibility. A decisive move above that level could draw renewed interest from short-term traders.

However, repeated tests of the same support level tend to weaken it over time. Each instance of buyers defending a given price typically drains available demand. Should XRP close decisively below $1.00 on elevated volume, stop-loss orders could be triggered and bearish momentum may accelerate, leading to a rapid decline.

For now, the $1 threshold remains intact, but the margin for error is shrinking. XRP is approaching another pivotal juncture — one in which buyers must demonstrate they can absorb sustained selling pressure, or risk the market breaking through one of the most widely monitored support levels of the year.

The coming week is likely to determine whether XRP holds above $1 or enters a broader phase of weakness.

Source: CryptoNews