Peter Smith
XRP has weathered a recent market deleveraging event while holding above two crucial technical levels on the monthly chart. The cryptocurrency's ability to defend the 0.786 and 0.886 Fibonacci retracement zones suggests underlying strength that could influence its trajectory in the coming months. This technical resilience is particularly noteworthy given the sharp selloff that shook out leveraged positions across the broader crypto market.
Technical Defense Under Pressure
Analyst Cantonese Cat recently pointed out that XRP successfully defended both the 0.786 level at $1.61 and the 0.886 level at $2.25 during a market-wide liquidation event. While the rapid selloff caught many traders off guard and left retail investors with limited opportunities to enter at lower prices, XRP's maintenance of these key zones has drawn attention from technical traders. These Fibonacci retracement levels are now acting as strong support floors, suggesting accumulation interest in the $1.61 to $2.25 range.
The chart reveals a resistance ceiling around $3.17, which corresponds with historical price action from previous market cycles. A monthly close above this threshold could unlock the path to significantly higher Fibonacci extension targets. If XRP regains upward momentum, technical projections point to potential targets of $8.29, $13.38, and even $26.63 in an extremely bullish scenario. The current chart pattern indicates a broader consolidation phase following the strong breakout seen in early 2025, which may be establishing the groundwork for the next major move higher.
Market Context and Implications
The recent deleveraging event flushed out short-term traders and over-leveraged positions, but XRP's technical structure remained intact. This is significant because assets that hold key support levels during periods of forced selling often demonstrate the strongest subsequent recoveries. The fact that retail investors largely missed the dip could create pent-up buying demand if market sentiment shifts bullish again.
With crypto markets beginning to stabilize and liquidity conditions improving, large-cap assets like XRP that show technical durability are attracting attention from institutional observers. The asset's ability to hold support during volatility suggests that long-term holders remain confident, which typically provides a solid foundation for future price appreciation.
Peter Smith
