XRP key support levels face testing: McGlone warns of downside risk, market opinions are seriously divided

XRP is repeatedly oscillating near a critical technical support zone, and market opinions on its subsequent trajectory are showing clear divergence. Senior Bloomberg commodity strategist Mike McGlone recently issued a warning, suggesting that XRP may face an important downside test. If it breaks below this support range, the bullish structure will be broken, and the space for a correction will further open up. However, the market is not unified; some analysts still see strong accumulation potential.

Technical Significance of the Support Level

According to McGlone’s analysis, this support level has played a buffering role multiple times since November 2025 and is now the core of the current bullish defense line. If the price continues to close below this level, the market’s optimistic outlook for XRP may need to be reassessed.

Potential consequences of losing this support include:

• Bears expanding the decline, triggering more stop-loss orders
• The technical bullish structure being damaged
• Market confidence being shaken, increasing the scope for short-term adjustments
• Similar structures have already failed in Bitcoin, adding risk warnings

Market Opinions Are Severely Divergent

Market judgments on XRP are markedly opposing. McGlone’s cautious stance contrasts sharply with analyst CryptoBull’s optimistic interpretation.

CryptoBull believes XRP’s current state resembles a horizontal consolidation before a historic bull run, rather than a trend reversal. He points out that XRP is digesting previous gains near historical highs, and as long as there is no continuous sharp decline, the potential for an upward breakout remains.

Valuation and Market Sentiment Signals

From broader market indicators, XRP is currently relatively undervalued. According to the latest data:

• Current price: $1.89
• 7-day decline: 2.20%
• MVRV indicator: -5.7% (in undervalued zone)
• Market cap: $11.472 billion, accounting for 3.86% of the total market

A negative MVRV typically indicates that most retail traders are at a loss on this asset, which is often seen as a buy signal. XRP’s -5.7% in this metric is relatively low among mainstream tokens, only higher than Bitcoin’s -3.7%.

Short-term Technicals vs. Long-term Fundamentals

The key question now is whether XRP will enter a deeper correction or prepare for the next upward move. This depends on the interaction of several factors:

Short-term technicals: The gain or loss of the support level is a crucial reference for trend judgment and vital for short-term traders. If support is broken, it may trigger technical selling pressure.

Long-term fundamentals: According to relevant news, Japanese regulators are considering classifying XRP as a financial product in Q2 2026, which would provide legal clarity for its use in domestic and cross-border payment systems. Additionally, Ripple’s RLUSD stablecoin has launched on Binance, enhancing XRP’s utility as a bridge between traditional finance and the crypto world.

Key Points to Watch Moving Forward

In the coming weeks, the gain or loss of this critical support zone could be decisive. Market participants are generally focused on whether XRP can maintain structural integrity during this correction.

For short-term traders, whether support holds is an important trend indicator. For medium- to long-term holders, the focus is on whether the accumulation phase can proceed smoothly and how subsequent policies and ecosystem developments unfold.

In the macro environment of 2026, risk appetite for assets is increasingly polarized, and XRP’s price behavior will be more susceptible to both sentiment and technical factors. This divergence also reflects market uncertainty regarding XRP’s valuation.

Summary

XRP is currently at a critical technical and psychological watershed. McGlone’s warning reflects concerns about the risk of support level breakdown, while CryptoBull emphasizes the potential of long-term accumulation. The low valuation indicated by the current MVRV adds complexity to these differing views—either suggesting that risk has been largely priced in or that downside space remains unexploited.

The next move will depend on whether the support can hold and how market sentiment evolves. Regardless of the outcome, this zone will significantly influence XRP’s subsequent trajectory.