Ripple's XRP has tumbled 15% over the past week, briefly falling below the $1 psychological level as bears regained control of the broader cryptocurrency market. The sell-off has been attributed to stronger-than-expected US inflation readings and turmoil in the technology sector.
Key Support Levels Under Scrutiny
Analyst Ali Martinez has identified critical price thresholds that could shape XRP's near-term trajectory. According to Martinez, the token recently broke below a mid-range support at approximately $1.29 and is now testing a lower boundary near $0.99. If that level fails to hold, he warned, XRP could face an extended correction toward $0.80.
Martinez emphasized that holding the $0.99 mark is crucial for preventing a deeper pullback. The analyst's assessment reflects broader concerns about institutional appetite for the token, with spot XRP ETFs experiencing significant outflows in recent days as pension funds and hedge funds have scaled back exposure.
Mixed Signals on Recovery Prospects
While downside risks loom, some technical indicators suggest oversold conditions. XRP's Relative Strength Index (RSI) recently dropped to around 21, its lowest level since June, indicating the asset has entered deep oversold territory—a condition that often precedes price recoveries.
Large XRP holders have also shown conviction, accumulating roughly 65.32 million units over four days, in contrast to the behavior of Bitcoin and Ethereum whales who have recently offloaded significant holdings. This divergence signals that major investors may see value at current levels.
Recent comments from David Schwartz, former Ripple CTO, have also weighed on sentiment. Schwartz disclosed that he has not purchased XRP in years and has sold nearly all his holdings due to personal risk discomfort, comments that sparked debate within the XRP community.
