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$XRP could be headed for one final drop toward the key $1 level before a larger recovery begins.
Analyst Arthur believes several technical and regulatory factors are lining up for a possible turning point. His comments come as $XRP remains under pressure in the ongoing crypto market decline.
Notably, the token is currently trading at $1.13, down 2.21% over the last 24 hours, according to CoinMarketCap.
Key Points
- Analyst Arthur says $XRP could make one final move toward $1 before a stronger recovery begins.
- $XRP has broken a long-term downtrend line, a sign that bearish momentum may be fading.
- Arthur sees the upcoming Clarity Act discussions as a potential catalyst for $XRP’s next move.
- The CMC Altcoin Season Index fell 6.52%, signaling capital is rotating out of altcoins and into safer assets.
Analyst Targets $1 Liquidity Zone
In a chart shared on X, Arthur highlighted $XRP’s weekly structure. He pointed to the 0.786 Fibonacci retracement level near $1.17, noting that it has already been tested twice.
Arthur also noted that $XRP has broken a long-term descending trendline that stretches back to its all-time high. This could be a sign that the downtrend is weakening. However, he does not believe the market is finished with the $1 area.
“$1.00 still sitting there. Full of liquidity,” Arthur wrote.
According to him, traders and market makers could push $XRP down to $1, or even slightly below it, to trigger stop-loss orders and shake out weaker holders. He sees this as a final liquidity sweep before a stronger upward move begins.
The chart also identifies a support zone between $0.95 and $1.00. Arthur believes this area will be important if selling pressure continues.
Clarity Act as Potential Catalyst
Arthur also pointed to the Clarity Act in the U.S. Senate as a possible catalyst for $XRP. He noted that July 4 is a target date for progress on the legislation. That places the event about a month away.
In his view, regulatory clarity combined with improving market structure could create favorable conditions for $XRP once the current correction ends.
Community Agrees With Shakeout Scenario
Arthur’s analysis received support from Korean market commentator @free_salaryKR. The commentator described the $1 level as a “massive psychological magnet.”
He argued that a move into that area would be a classic liquidity hunt, forcing impatient traders out of their positions before a larger rally.
According to his analysis, the combination of a broken all-time-high trendline, Fibonacci support, and the Clarity Act timeline creates what he called a “textbook setup” for a potential reversal.
$XRP Falls Alongside Broader Crypto Market
Despite the bullish long-term outlook, $XRP remains caught in a market downturn. CoinMarketCap data shows that total cryptocurrency market capitalization fell 2.07% over the past 24 hours.
Investor sentiment has also weakened sharply. The Fear & Greed Index currently sits at 17, signaling “Extreme Fear.”
Meanwhile, the CMC Altcoin Season Index dropped 6.52%. This suggests capital continues to move away from altcoins like $XRP and into relatively safer assets during the current macro-driven sell-off.