XRP fell to a seven-week low of $1.17 on Friday before rebounding slightly, capping a volatile trading week for digital assets. The decline pushed the token's social sentiment to its lowest level since July, according to analyst Ali Martinez, reflecting a sharp deterioration in trader confidence.
Contrarian View
Martinez suggested the bearish crowd could be a contrarian positive. He noted that XRP appears to be forming a potential inverse head-and-shoulders bottom, but the broader market has not recognized or bought into the setup. In his view, the bullish side may not yet be overcrowded as investors enter extreme fear territory.
The token fell from $1.35 to $1.185 and then to $1.17 on Friday, marking its lowest price since the August 22 breakout rally. Martinez had previously identified the right shoulder of the potential inverse head-and-shoulders structure and pointed to $1.60 as a major upside target if the pattern confirms. However, XRP was rejected at the resistance level he identified and has slumped well below the support in his analysis.
Downside Scenario
CasiTrades offered a less optimistic near-term outlook. She argued that XRP's recent push toward the $1.30 C-wave target failed to extend, which she interpreted as evidence that the move was corrective rather than impulsive. With the token slipping below key support at $1.26 and further below $1.20, she now expects a move toward the major $1.10 Fibonacci target, with $1.125 as a possible pause or bounce area beforehand.
She said she hopes to see a bullish RSI divergence around $1.10, which would suggest weakening downside momentum and potentially mark the end of the current Wave 2 correction.
Structure Unchanged
Dark Defender said XRP's broader structure has not changed and highlighted $1.12 as former resistance from July and August that should now act as support. In his view, the $1.21 and $1.12 zones remain consistent with the Wave 2 roadmap he outlined in late October, while a larger Wave 3 move is still developing.
