XRP Faces Selling Pressure Following Break Below Key Support Level

Ripple's native token, XRP, has encountered significant downward momentum in recent trading sessions, breaking through the psychologically important $2 level and falling further to test lower support zones. The current market conditions reflect heightened selling pressure across the asset, with technical analysts tracking key price levels for potential stabilization.

Current Market Performance

XRP is currently trading at $1.85, representing a 2.7% decline over the past 24 hours and a more substantial 7.8% drop over the seven-day period. The breach below $1.93 marks a critical move away from the $2 psychological barrier, which had served as a notable resistance point for investors. This downside movement indicates sustained selling interest from market participants.

Technical Analysis and Support Levels

Analyst Skipper has outlined key technical levels that warrant attention from those monitoring XRP's performance. According to the analysis, maintaining trading positions below $1.88 keeps downside pressure on the asset. However, $1.85 has emerged as a potential stabilization point where buyers may consider establishing positions. The identification of these levels provides a framework for understanding potential price support and resistance zones.

Supply Dynamics

A notable shift in XRP's market supply has occurred, with a substantial contraction reported between early 2025 and December, resulting in a decline in circulating supply from approximately 3.9 billion tokens to around 1.6 billion tokens—a significant 45% reduction. This contraction may influence the token's long-term dynamics, although immediate price impacts remain contingent on broader market conditions.

Market Implications

The current price action mirrors broader market conditions impacting digital assets. The combination of technical selling pressure and ongoing tests of support levels suggests continued volatility in XRP trading. Market participants are keenly observing whether buying interest will emerge at identified support zones or if additional downside pressure will develop.

Conclusion

XRP's recent price movements below critical technical levels have drawn attention to support zones and supply dynamics. While $1.85 stands as a potential stabilization point, traders are closely watching to see if this level holds or if further downside testing occurs. The 45% supply contraction introduces another layer to XRP's market profile, yet immediate trading activity remains primarily driven by technical factors and overall market sentiment.

Why It Matters

For Traders

Continuously monitoring key support levels is essential for making informed trading decisions.

For Investors

Understanding supply dynamics can provide insights into long-term asset performance.

For Builders

Recognizing market sentiment is crucial for developing products that align with investor needs.