A sharp drop and tight volatility band in XRP! What does the $1.20 threshold mean for investors?

A crucial range stands out in the technical outlook

At the time of writing, XRP is trading at $1.13. In the past 24 hours, the cryptocurrency lost 3.21% of its value, while its trading volume has dropped to $1.14 billion. According to data, this signals a dramatic 43.3% decrease in daily volume. Despite this, XRP’s seven-day gain stands at 8.75%. The asset is known for its central role in the Ripple ecosystem, widely used in cross-border payments.

Egrag Crypto, a closely-followed market analyst, suggests that XRP may be preparing for a new phase of expansion. He notes that on the weekly chart, the Super Guppy indicator has shifted from a strong green expansion mode to a mixed, gray compression zone, signifying that momentum is fading and the market is entering a more cautious phase.

Egrag Crypto emphasizes that if the $0.80 to $1.10 range holds, the current market structure remains valid, but a breakdown below this band would significantly damage the overall picture.

According to the analyst, the $0.80 to $1.10 band is at the core of the current structure. As long as XRP trades within this range, the technical framework is considered intact. For an upward scenario, XRP needs to maintain support, recover above the red moving average zone, and see the Guppy indicator return to a green expansion phase.

If a new expansion signal emerges, Egrag Crypto sees possible targets at $3.59, then between $6.73 and $9.17, $16.36, and potentially as high as $53.86 in an extended price cycle.

The $1.20 level is key for reducing risk

Meanwhile, another analyst, ChartNerd, highlights a different signal on the weekly chart which supports a bearish view. According to him, XRP is close to a “death cross” between the 20-week exponential moving average and the 200-week simple moving average—historically a pattern seen during downturn phases.

ChartNerd points out that the 200-week simple moving average now sits at the $1.20 level. Should the price reclaim this region, it could act as a ceiling for supply and would be a crucial sign that downside risk is easing.

Recalling previous cases, ChartNerd notes that after a death cross in 2022, XRP hit a bottom within one week, while in the 2018–2020 cycle, bottom formation took six months to play out.

The analyst interprets historical patterns as indicating that, within a cycle stretching from June through the end of 2026, XRP could set a low somewhere around $0.90 or $0.70. Nevertheless, in the short term, the $1 level remains closely watched as a potential local bottom.