XRP Alert: A Drop Below This Critical Support Level Could Trigger a Deeper Correction

XRP teeters on the edge—lose this key level, and the bears might feast.

Critical Support Test

The $0.50 zone has held firm for weeks, but another rejection here could spell trouble. If buyers don’t step up, we’re staring down a 15-20% plunge toward December 2024 lows.

Market Sentiment Shifts

Traders are flipping bearish as volume dries up—classic distribution pattern. Even the perpetual swaps funding rate turned negative, signaling fading bullish conviction.

Regulatory Overhang Lingers

SEC lawsuit ghosts still haunt price action. Until clear institutional adoption resumes, XRP remains at the mercy of swing traders chasing pennies while whales accumulate.

Closing Thought

Another ‘stablecoin’ day in crypto—where 5% moves count as sideways action. Watch the $0.48 level like a hawk; break that, and we’re back to ‘buy the rumor, sell the news’ territory.

Key Levels to Watch

XRP is trading around $2.8, holding just above the 50 EMA on the 3-day chart. The moving average is projected to meet the price at $2.77, making it the next level to watch. Analyst EGRAG crypto said,

“If we break through this target, we could see further downside, which isn’t what we want to hear.”

Notably, the $2.77 support is short-term, while $2.65 remains the most critical area for the broader trend. This level has been a pivot in past cycles. A hold above $2.65 keeps the higher timeframe outlook intact. If it fails, further supports are seen at $2.50, $2.37–$2.41, and $1.85 at the 200 EMA.

Throw Back Phase Confirmed

EGRAG also noted that XRP has completed a 5-wave downside move, with the asset reaching $2.82. He described this as the “Throw Back Process,” confirming a projection they made earlier. The MOVE followed rejection at $3.13, which has acted as a strong resistance point.

Support remains at $2.82, with a possible retest of $2.65 if selling pressure continues. On the upside, a recovery above $2.94, where the 21 EMA and 33 SMA converge, WOULD be the first step toward stabilization. If achieved, XRP could then test $3.13 and $3.40.

Signs of Accumulation

Analyst Erica Hazel pointed to buying activity, stating, “76% of traders are long (Binance L/S ratio 3.34),” with more than $66 million in outflows over the past two days. She suggested that larger players may be positioning for higher prices.

Hazel added that XRP recently broke out of a descending trendline in place since mid-July. The retest of $2.95 held, confirming it as support. As long as the asset holds above $2.95 and $2.85, the bullish setup remains valid.

XRP faces resistance at $2.96 and $3.13. A move above these levels could open the way to $3.31. The next major test sits at $3.64, which Hazel said,

$XRP is grinding higher after retesting $2.95 support.

• 76% of traders are long (Binance L/S ratio 3.34)
• $66M+ outflows in 48h = clear accumulation
• RSI neutral at 54, EMA still holding

Next key test: $3.64 resistance. Break it, and bulls take full control.#XRP #Ripple pic.twitter.com/4GBY5wfuaV

— Erica Hazel (@Erica__Hazel) September 22, 2025

Situated at 54, this value of RSI suggests a neutral reading and allows space for further movement. The 50-day EMA, however, still ascends after putting in a crossing, providing support for the medium-term trend. Although volatility remains, analysts agree that all-time highs above $2.65 are a prerequisite for maintaining the general bullish outlook.