Usman Salis
XRP is at a crossroads. After weeks of consolidation, the price is sliding back toward the bottom of its descending channel—a pattern that's been in play since late July.
The Technical Setup
Analyst ChartNerd recently flagged $2.20 as the make-or-break level: lose that, and XRP could be headed for $2.00 or even the $1.94 Fibonacci support zone. With a rising wedge breakdown already in the rearview mirror, the question now is whether bulls can defend the channel floor—or if this correction still has further to go.
Here's what the chart is showing:
- Descending channel dominance – XRP has been trading inside this channel since July, with the upper line acting as resistance and the lower line catching price on dips. Right now, XRP is hugging that bottom support.
- Lost support at $2.20 – This red zone around $2.20–$2.25 used to be a solid pivot. XRP broke through it, tried to reclaim it, and failed. That's textbook bearish action.
- Rising wedge breakdown – A wedge pattern on the right side of the chart broke down hard, triggering a wave of selling that's now pressing XRP toward channel support.
- Fibonacci targets below – Two key levels are in play: the 0.5 Fib at ~$2.07 and the 0.618 Fib at ~$1.94. Both line up with the channel bottom and historical demand zones, making them high-probability bounce areas.
Why XRP Is Pulling Back
A few things are weighing on XRP right now. Broader market risk-off sentiment has investors rotating into Bitcoin or cash. XRP also ran up pretty hard earlier, so some mean reversion was due. Add in thinner liquidity ahead of macro events and automated stop-losses getting triggered below $2.20, and you've got a recipe for downside pressure.
If XRP closes below $2.20, expect a test of $2.00 or the deeper Fibonacci zone around $1.94–$2.07. That's where buyers are most likely to step in. If support holds there, a recovery toward $2.40–$2.60 becomes possible. Long-term, as long as XRP stays above the 0.618 Fib, the broader structure remains intact—setting up potential for a reversal later in Q4 or early Q1. But until then, caution is the name of the game.
Usman Salis
