XRP Faces Fresh Bear Pressure with Risk of Further Drop Toward $1.20 Support

XRP is navigating a challenging technical landscape as bearish headwinds persist across both major trading pairs. With the recent rally losing momentum, the token currently trades at $1.40, down 3.5% over the past 24 hours, facing heightened risk of a fresh drop toward critical lower support levels. The question facing traders now is whether the pullback from early January rebounds will find footing or continue its descent into the broader downtrend.

Weakening Rally Tests Critical $1.40–$1.80 Support Zone

On the daily USDT chart, XRP is trading dangerously close to the major support floor that had previously anchored the $1.80–$1.90 range. The rejection from the $2.40 overhead resistance band coupled with retreating 100-day and 200-day moving averages signals persistent bearish bias in the medium term. Daily RSI readings have cooled from overbought territory back toward neutral levels, a telltale sign that the recent bounce is losing steam.

At current levels near $1.40, XRP sits precariously positioned between the immediate support and the declining moving averages still trending lower overhead. As long as the $1.80–$1.90 floor holds firm, there remains potential for a consolidation base to establish, with reclaiming the $2.20–$2.40 zone as the first hurdle for any trend reversal argument. However, a decisive breakdown below $1.80 would open the door to further downside, with October’s capitulation lows around $1.60 coming into focus, and if selling pressure accelerates, the higher-timeframe demand zone near $1.20–$1.30 becomes a realistic target.

USDT Technical Backdrop: Bearish Structure Intact

The structure remains locked in a downtrend framework until concrete evidence of reversal emerges. The combination of declining moving averages, RSI washout, and repeated rejection from resistance all point toward bear market conditions persisting. The gap between current price and the $1.20–$1.30 support zone represents the zone where capitulation-driven selling could eventually terminate, though reaching those levels would require sustained breakdown below multiple intermediate support tiers.

XRP/BTC Pair: Underperformance Deepens Risk

Against Bitcoin, XRP’s relative weakness is even more pronounced. The XRP/BTC pair hovers around 2,100–2,200 satoshis after a sharp rejection from the 2,400 satoshi resistance cluster where both the 100-day and 200-day moving averages converge. This creates a structural downtrend where each rally into the 2,400–2,500 satoshi range encounters selling pressure and fails to establish higher highs—a classic pattern of underperformance.

The lower support zone sits around 1,900–2,000 satoshis, where recent downside wicks hint at some residual demand, yet daily closes remain unable to reclaim the 2,400–2,500 satoshi region and critical moving averages. This continued failure means relative performance continues favoring Bitcoin over XRP. A breakdown below 1,800 satoshis would confirm renewed underperformance acceleration and could extend the slide toward the major demand area closer to 1,500 satoshis—further compounding XRP’s bear pressure.

Key Levels to Watch: Support and Resistance in Focus

For traders monitoring XRP, the hierarchy of critical levels is now clear. In USDT terms: $1.80–$1.90 acts as the nearest support floor, $1.60 as the secondary support, and $1.20–$1.30 as the lower-timeframe demand zone. Any move below these thresholds would confirm the bear trend’s durability. Conversely, reclaiming $2.20–$2.40 would be required to suggest a meaningful trend reversal is taking shape.

The bear case remains the path of least resistance until price action delivers a convincing close above declining moving averages and established resistance bands. With market conditions showing no signs of stabilization and the $1.40 price point already threatening critical support structures, traders should remain vigilant for the potential drop toward $1.20–$1.30, which could test resolve in a broader market context.