XRP Price Falls Below $1 as Analyst Predicts a Drop to $0.80
XRP price faced renewed selling pressure on Friday, dropping below the $1 psychological support level for the first time since August. The drop came after a wave of leveraged traders got liquidated, adding pressure to the cryptocurrency market. XRP was trading at $0.9923 on Saturday after hitting an intraday low of $0.9818 in the same four-hour trading candle.
The token has now fallen about 16% in November, after another drop of 16.07% in October. This prolonged weakness has raised concerns whether XRP can hold its current support or witness another major correction. But if the price breaks below its current technical support, crypto analyst Ali Charts sees $0.80 as a possible downside target.
XRP Price Falls Below $1 as Selling Pressure Escalates
Crypto market sentiment turned bearish, resulting in a significant plunge in XRP. The asset fell below $1 on Friday for the first time since August, breaching a key psychological level. XRP traded at $0.9923 on Saturday, after falling to $0.9818 within a four-hour candle.
The latest trading session has witnessed a rise in selling pressure. XRP lost around 16% in November after a 16.07% correction in the previous month. These are monthly losses in a row, showing how hard buyers have had to take control, even with past attempts to recover.
The downward momentum was attributed to liquidations of leveraged traders. Prices can drop quickly, and leveraged positions can be automatically closed if they drop below liquidation thresholds. The forced sales inject more volatility into the market, adding to the downward pressure.
“The $1 level has become a major psychological reference point.” Should XRP fail to reclaim this price, traders may continue to look to lower support levels for signs of stabilization.
$0.80 Is Next XRP Price Target, Analyst Ali Charts Says
XRP crypto analyst Ali Charts has pointed out a potentially important technical development in the XRP price structure. “XRP was not able to break above $1.55, the upper boundary of its descending price channel,” according to his three-day chart analysis.
XRP was rejected close to this resistance and retraced its recent gains to head toward the lower end of the channel around the $0.99 mark.
“A decisive breakdown below this channel floor could expose XRP to further losses, potentially pushing its price toward $0.80,” the analyst cautioned.
That would be a further correction of about 19 percent from Saturday’s quoted price of $0.9923 to $0.80. At the same time, the difference between the upper and lower borders of the channel indicates a potential drop of approximately 36%.
This technical setup makes the $0.99 level an important one to watch. A sustained breakdown could improve bearish expectations, while a recovery above the channel floor could provide buyers an opportunity to stabilize the price.
Why is the crypto market down today?
Selling pressure in the broader cryptocurrency market has also contributed to XRP’s weakness. The global crypto market cap dropped 2.25% in 24 hours to approximately $2.27 trillion.
Bitcoin dropped 3.34% to fall below $69,000 and Ethereum fell below $1,900. The slump in the big cryptocurrencies increased uncertainty and lowered demand for the riskier digital currencies.
Expectations for US monetary policy also impacted market sentiment. The consumer price report on Nov. 10 increased expectations for higher interest rates. Traders at Kalshi priced an 89% probability that the Federal Reserve will hike rates by 25 basis points in December.
Higher rates can depress demand for speculative investments, as traditional interest-bearing assets become more attractive. Also, leveraged traders are more likely to face liquidation during periods of falling prices.
Combined, all these factors have created tough conditions for XRP and other major cryptocurrencies.
XRP ETF Outflows Pile on Market Sentiment Woes
Institutional investment flows also showed some weakness in the XRP market. US spot XRP exchange-traded products saw $1.09 million in net outflows on Nov. 13.
Franklin’s XRPZ had inflows of $4.45 million, while Grayscale’s GXRP had outflows of $5.54 million. The other three funds, from Bitwise, Canary and 21Shares, saw zero net flows.
Total net assets were about $1.15 billion, despite the daily outflows, and cumulative net inflows were $1.79 billion.
Trading volume was $22 million, with $14.56 million coming from Bitwise. Bitwise also had the largest net assets of the five funds at $416.89 million.
All five ETFs closed the session in the red with Franklin’s XRPZ taking the biggest fall, down 1.47%. The figures underscore cautious institutional sentiment during XRP’s latest correction, though one day of outflows does not establish a longer-term trend.
XRP Price Prediction: Is XRP headed to $0.80?
XRP short-term technical structure is bearish, trading below the key psychological level at $1. The nearest support level is at $0.95 on the four hour chart. If sellers push XRP below this zone, the next visible support is near $0.85.
Ali Charts downside target at $0.80 could come into focus on a deeper breakdown.
Technical indicators are also pointing to more weakness. The four-hour Relative Strength Index (RSI) was at 32.29, near the oversold level of 30. The reading here is showing heavy pressure to the downside, but it is not an immediate reversal signal.
The Moving Average Convergence Divergence (MACD) indicator was near -0.028 and kept trading below its signal line, a sign that bearish momentum was still in control.
But a recovery is still possible if buyers can take charge. XRP would first need to climb back above $1, and hold that level as support. A successful recovery may bring the attention to the next resistance near $1.10.
For now, $0.99, $0.95 and $0.85 are important downside levels, while $1 and $1.10 are potential recovery targets. Where XRP goes next will depend a lot on whether buyers can defend support or sellers continue to push the correction lower.
