XRP Risks Drop to $1.27 as Key Support Fails
XRP is trading near $1.35, down about 6% over the past week after falling below the closely watched $1.36 support level. Analyst ChartNerd said XRP has recorded two consecutive weekly closes below its 50-week exponential moving average, increasing the risk of a deeper correction.
The analyst identifies $1.27, where the weekly 20-week EMA is located, as the next major support. Additional downside levels include $1.21 and $0.85. XRP previously reached $1.70 on 22 August after rising about 70% in three days during a broader Bitcoin-led market rally.
A sustained recovery would require XRP to reclaim resistance at $1.40-$1.43, followed by $1.47. ChartNerd said a stronger bullish reversal cannot be confirmed until XRP recovers and holds both key weekly moving averages. Higher resistance levels are marked at $1.65, $1.82 and $2.40.
Despite the bearish XRP technical outlook, spot XRP ETFs attracted more than $110 million in inflows last week, their strongest weekly performance since December. Potential September catalysts include a Senate vote on the CLARITY Act and a shareholder vote linked to Evernorth’s planned Nasdaq listing. For traders, XRP remains range-bound below resistance, with the $1.27 support zone central to near-term risk management.
Bearish
The immediate market signal is bearish. XRP has lost the $1.36 support zone and posted two weekly closes below its 50-week EMA. These conditions often encourage traders to reduce long exposure or place stop-loss orders, increasing the probability of a test of the $1.27 weekly 20 EMA. A break below $1.27 could expose $1.21 and, in a more severe correction, the $0.85 accumulation zone.
Short-term sentiment is likely to remain weak while XRP trades below $1.40-$1.47. Repeated failures at resistance can reinforce lower highs and keep volatility elevated. Similar technical breakdowns in major cryptocurrencies have often led to further selling before buyers attempt to establish a base.
However, the outlook is not unambiguously negative. More than $110 million in spot XRP ETF inflows indicates continued institutional or investor demand and could cushion declines. Regulatory developments, including the potential CLARITY Act vote, may also improve longer-term sentiment. If XRP reclaims and holds $1.47, the bearish setup would weaken and attention could shift toward $1.65 and higher.
For now, technical momentum outweighs these supportive factors. Traders may watch ETF flows, Bitcoin’s direction, weekly closes and volume around $1.27. Long-term recovery prospects remain dependent on XRP reclaiming its major weekly moving averages and forming a confirmed bullish crossover.