XRP has experienced a significant decline of 18% this month, with its price slipping to $2.19 at press time. This drop has brought the token near a crucial support level, which analysts suggest could determine its future trajectory. In the past 24 hours, Ripple's token saw a modest increase of 1%, and over the last week, it gained 3%. The daily trading volume currently stands at $3.89 billion. Despite these recent movements, XRP remains trading approximately 40% below its July 2025 high of $3.65.
XRP Tests Critical Support Zone
Analyst CRYPTOWZRD has characterized the current price action as another "inverse parabolic decline." Historically, a similar sharp drop earlier this year was followed by a rapid rally. This recent decline, however, is noted as being even more pronounced. According to the same analyst, sharp declines often precede an equally violent rally.
"Sharp declines often precede an equally violent rally."
Market participants are closely observing whether the $2.00 support zone will hold. If this level proves to be a firm floor, XRP could potentially target the $2.60 area, which represents the midpoint of its recent trading range.
Consolidation Phase May Signal a Setup for Growth
Analyst ChartNerd has presented a long-term chart indicating that XRP is currently in a multi-month consolidation phase. This range is forming just above a significant level that previously marked its all-time high close and now serves as substantial support. The asset has maintained stability within this defined range for several months. If this support holds, a potential next target could be around $8.00, a level derived from a Fibonacci projection used for estimating breakout potential.
"Valid as long as support holds," the analyst noted.
Furthermore, another chart shared by ChartNerd suggests that XRP may be approaching the final leg of a wave pattern. This structure, based on the Elliott Wave theory, comprises five stages, and XRP appears to be in the fourth phase. The current consolidation is situated just above the 2021 high, which is now acting as support. The potential fifth and final move, if it materializes, could target $24, according to this analysis of price patterns over time.
ETF Flows and Market Liquidity Dynamics
Activity surrounding XRP Exchange-Traded Funds (ETFs) has seen an increase. Data shared by CryptosRus indicates strong inflows into new funds, with over 80 million tokens being added on the first day of trading. Grayscale and Franklin Templeton collectively saw $130 million in assets at launch. Canary's fund currently holds the largest share, with its assets reaching $331 million.
Concurrently, traders are monitoring for a potential breakout from a possible flag pattern. The next short-term price movement could target the $2.35 to $2.45 range. Heatmap data from Steph Is Crypto reveals high liquidity levels between $2.30 and $2.40.
"This zone remains a magnet," the post read.