XRP fell 16% from September high, analysts warned of key support at $1.37

XRP falls 16% from September high, analysts warn of key support

On Monday, XRP fell to US$1.40, a 16% retreat from its late September high. Although there was a certain degree of rebound after hitting a low of US$1.32 on October 8, it failed to restore the bullish momentum that had appeared before, causing the market to face increasing pressure.

Breakthrough failed, key resistance levels emerged

In September, XRP once surged to US$1.66, hitting the US$1.60 to US$1.70 resistance zone pointed out by some analysts, which is regarded as the neckline of bullish patterns. Traders generally expect that a clear break through this range will open the door to a rise of $1.80 or even $2.00.

However, seller power prevented the price from rising further, pushing XRP back below $1.50, then falling below $1.45, and finally falling below $1.40 last week. As of October 8, XRP fell to $1.32, giving up most of the gains since August.

Investing.com analyst Itai Smidt pointed out that XRP failed to effectively break the neckline of its bullish structure and lost the key level needed to maintain the uptrend. He explained that the failure to break through and the transformation of support into resistance changed the technical landscape and needed more confirmation signals before traders could regain confidence in a new round of gains.

XRP's failure to break through at the neckline has made the technical side more fragile, and future progress will depend on whether it can regain the previous support level and hit a new high.

The rebound is weak, with bearish indicators dominating

XRP's rebound from a low of $1.32 has brought a hint of optimism, but analysts remain cautious about the strength of the rally. John Isigge of FXStreet pointed out that unless buyers can achieve a solid daily close above the $1.40 mark, the downside remains the path of least resistance.

He also emphasized that the Relative Strength Index (RSI) readings remained bearish, while the MACD indicator also continued to send selling pressure signals. Analysts believe intraday trading above $1.40 is not enough to reverse the overall trend. XRP needs to maintain this level and break through the $1.43 - 1.48 range to break the "lower highs" pattern that has been formed since September.

Until these conditions are met, a rebound may be seen as a short-term easing rebound in the context of a weaker market rather than a signal that the adjustment is over.

Market participants hold steady and new catalysts emerge

Despite recent weak performance, some analysts pointed out that long-term investors have not surrendered. Ananda Banerjee of BeInCrypto reported that outflows from exchanges remained stable throughout the decline and exchange-traded fund (ETF) investors continued to increase exposure even as prices fell.

Glassnode data cited by Banerjee showed that XRP's 30-day net outflow from the exchange was minus 1.58 billion tokens as of October 8. The U.S. spot XRP ETF also attracted new funds, with Franklin's XRPZ reporting an inflow of $8.17 million on October 8 when XRP fell to $1.32.

Banerjee marked $1.37 as the decisive level, indicating that if the daily line closes below this level and subsequently breaks below $1.30, it may prompt patient holders to start selling and pave the way for a further decline to $1.20. ETF inflows and stable outflows from exchanges have shown some resilience; however, a break in key support levels could trigger a broader sell-off.

At the same time, a new development emerged: investment firm Evernorth completed its SPAC merger on October 9 and is scheduled to start trading on Nasdaq under the XRPN symbol. The company holds 473 million XRPs, providing investors with another way to participate in open market XRP investments.

However, a listing does not guarantee an immediate increase in demand for tokens, which is seen as an additional path rather than a direct boost to XRP prices.

Noun Explanation

SPAC (Special Purpose Acquisition Company): A listed company that raises capital through an initial public offering (IPO), aiming to merge or acquire an existing private company, allowing the target company to publicly trade without going through the traditional IPO process.

Key dates and price review