$XRP price is testing a critical support zone near $1.40 after giving back roughly half of its recent gains. The token rose 71.8% from $0.988 to $1.698 before entering a 20% correction. Veteran analyst Matthew Dixon believes the decline may have created a potential major bottom, but says confirmation is still needed.
$XRP Chart Signals a Possible Major Bottom
Crypto analyst and veteran financial trader Matthew Dixon said the $XRP chart has become more constructive, although he does not yet view the move as a confirmed new bull trend.
Dixon said,
“$XRP, the chart has become substantially more constructive, but I would call it a potential major bottom rather than a confirmed new bull trend.”
Dixon believes the decline from approximately $3.65 may have completed an A-B-C correction. He also highlighted $XRP’s move into the $1.00 support zone and its strong weekly rebound as signs that selling pressure may be easing.
For the bullish setup to strengthen, $XRP must hold above the $1.20-$1.30 range before breaking above $1.70. A move past $2.00 would provide stronger evidence that the broader uptrend has resumed.
However, Dixon warned that the recent recovery may only be an oversold bounce. If $XRP fails to clear the $1.55-$1.70 resistance area and turns lower, the token could retest $0.94.
3.2 Billion $XRP Establish Key Support at $1.35
On-chain data from crypto analyst Ali Martinez also supports the outlook for a strong demand zone. Martinez noted that approximately 3.2 billion $XRP were traded between $1.35 and $1.38, making this range an important support area.
As long as the support holds, $XRP could next encounter resistance at $1.60, where roughly 1.99 billion $XRP were traded.
The next resistance levels are $1.68, supported by trading volume of 1.98 billion $XRP, and $1.86, where approximately 3.47 billion $XRP changed hands.
A break above $1.86 could clear the way toward $2.19, a level where another 3.12 billion $XRP were previously traded.
$XRP Faces Downside Risk Below $0.94
If buyers fail to defend the current support zone, $XRP could face additional selling pressure. Dixon also warned that a weekly close below $0.94 could weaken the bullish setup and push the price toward $0.75, followed by the $0.55-$0.60 range.
For now, $XRP is trading between support at $1.35-$1.38 and resistance at $1.70-$1.86. A decisive break above or below these levels could determine the token’s next major move.
