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While sentiments have become fearful following the recent price downturn, history shows $XRP might be preparing for an outsized upside move.
This panic followed a sharp slide that erased much of the token’s gains earlier in the bull cycle. After topping out near $3.66 in July 2025, $XRP has fallen roughly 61% and now hovers around $1.39, a level that has unsettled short-term holders.
Yet similar corrections in previous cycles laid the groundwork for strong rebounds, including one pullback that preceded an 835% surge.
Key Points
- While sentiments have become fearful following the recent price downturn, history shows $XRP might be preparing for an outsized upside move.
- After topping out near $3.66 in July 2025, $XRP has fallen roughly 61% and now hovers around $1.39, a level that has unsettled short-term holders.
- Yet similar corrections in previous cycles laid the groundwork for strong rebounds, including one pullback that preceded an 835% surge.
- Currently, $XRP has dropped into a higher-time-frame demand zone that historically served as a multi-year accumulation zone.
$XRP Nears Accumulation Zone
Analyst Crypto Patel highlighted this trend in a recent X post, implying that the bearish $XRP trend may only be temporary. Notably, the latest decline saw the coin break below the $2 region, an area many had treated as dependable support.
Once this zone gave way to bearish pressure, the price moved gradually to a low of $1.11 earlier in February, representing a 69% correction from the July high of $3.66. Currently, $XRP is dropping into a higher-time-frame demand area that historically served as a multi-year accumulation zone.
The support area lies between $0.86 and $0.66, a former resistance zone where $XRP consolidated before breaking out during the late 2024 rally. Patel highlighted that in past cycles, this same structure acted as a catalyst for a breakout to greater heights. As such, he implied that there was no need to panic, as the current setup suggests history could rhyme in the coming weeks.
$XRP Analysis/Crypto Patel">
Capitulation Signals Echo Earlier Cycle Bottoms
Furthermore, Patel cited that on-chain data adds another layer to the rebound optimism. Specifically, activity tied to $XRP recently showed one of the largest realized loss spikes since late 2022, with roughly $1.93 billion in losses recorded in a single week.
Such readings typically emerge when frustrated holders exit positions en masse. While painful in the moment, these events have often coincided with exhaustion in selling pressure.
Historically, when losses cluster this aggressively, much of the weak supply has already been flushed out, creating room for stabilization. Similar capitulation phases in prior years were followed by market bottoms and extended recoveries.
$XRP Targets and Critical Decision Zone
From a chart perspective, $XRP is now testing a broad support band between roughly $0.86 and $0.66. If price can remain above that zone, particularly the lower support band at $0.66, on higher time frames, the structure would resemble previous cycle trends that eventually led to strong bullish expansion.
A sustained hold could open the door for a gradual climb back toward former resistance areas near $2, $3, $5, and $10. From here, this would represent a 43%, 115%, 259%, and a staggering 619% increase, respectively.
However, a decisive weekly close below the lower boundary would invalidate the bullish move and steer a further downtrend.