XRP steadied around $1.40 on Monday after a rebound from an October 8 low near $1.32, but the token remains on fragile technical footing after losing roughly 16% from its late-September peak. Analysts said the bounce has not yet repaired the broader chart damage—especially because key support has failed and momentum indicators still point to downside risk.
The latest move comes as investors monitor whether XRP can reclaim and hold the $1.40 area, a level traders say is critical to determining whether the sell-off is ending or turning into a deeper breakdown.
Key takeaways
- Price move: XRP traded near $1.40 after recovering from a low around $1.32, though it is still down about 16% from its late-September high.
- Catalyst: The rebound followed last week’s sell-off, but technical signals and failed support-resistance levels remain in focus.
- Key implication: Bulls need more than intraday strength—analysts want confirmation that XRP can close above $1.40 and rebuild a higher-high structure.
- Watch level: $1.37 is being framed as a dividing line for whether patient holders hold or start selling into weakness.
- Additional development: Evernorth’s SPAC merger completion and upcoming Nasdaq listing under XRPN may expand access to XRP exposure, but it may not automatically translate into token demand.
What drove the move
XRP’s September rally ran into a major test near the $1.60–$1.70 resistance cluster, which traders had treated as a potential “neckline” for a bullish pattern. According to Investing.com analyst Itai Smidt, XRP “failed at the neckline of a bullish pattern,” then surrendered levels that were needed to keep the setup intact.
After the rejection, XRP slid through $1.50 and $1.45, eventually breaking below $1.40 during last week’s sell-off. By October 8, the token dropped to about $1.32, retracing much of the advance from its August lows, according to the article’s cited chart commentary.
The key point for investors is that a failed breakout typically changes how traders interpret future rallies: former support levels can become resistance, making recovery harder unless the market can convincingly reclaim the broken structure.
Market reaction: why the $1.40 bounce isn’t enough yet
While the rebound from $1.32 to roughly $1.40 has encouraged dip-buying, FXStreet analyst John Isige warned on October 9 that XRP’s “path of least resistance remains downward” unless buyers secure a convincing daily close above $1.40. Isige also pointed to bearish technical signals, including weak momentum conditions reflected in RSI readings and a MACD sell signal.
Investors are therefore watching for confirmation rather than relying on intraday strength. In practical terms, the market appears to differentiate between a token trading above $1.40 briefly and the broader signal of repairing trend structure through sustained closes and higher-high formation.
Isige’s framework also highlighted the next hurdles: XRP would need to reclaim the region around $1.43–$1.48 and then break the sequence of lower highs that formed since September, the analysis said.
What analysts say to watch next
Another closely monitored line is $1.37, which BeInCrypto analyst Ananda Banerjee described as a key dividing level for investor behavior during the drawdown. Banerjee’s read was supported by exchange and ETF flow indicators cited in the report.
According to the article, Banerjee said exchange outflows remained steady through the decline, while ETF-related demand continued even with investors sitting on losses. The report referenced Glassnode data showing XRP’s 30-day exchange net position change at roughly -1.58 billion tokens as of October 8.
At the same time, the market is weighing whether that patience can persist. The report said Banerjee warned that a daily close below $1.37, followed by a break of $1.30, could shift patient holders into sellers and expose XRP to lower levels around $1.20.
That is the tension currently shaping the trade: steady exchange positioning and ongoing ETF inflows can slow selling pressure, but technical breakdown levels can still trigger risk-off behavior if momentum fails to reverse.
Bigger picture: a new public-market route for XRP exposure
The article also pointed to a new catalyst tied to access rather than immediate token demand. It said Evernorth completed its SPAC merger on October 9 and is expected to begin trading on Nasdaq on Monday under the ticker XRPN, with about 473 million XRP in holdings.
The listing could provide another public-market pathway for exposure to XRP, but it does not guarantee fresh spot buying of the token itself, the report cautioned. Investors will likely treat it as a secondary factor relative to near-term chart confirmation—particularly the ability to hold $1.40 and defend the $1.37 line.
Looking ahead, traders are expected to watch for daily closing price action around $1.40, follow-through toward $1.43–$1.48, and any renewed pressure if the token slips back under $1.37. With technical signals still mixed, the next few sessions may be decisive for whether the rebound develops into a trend repair or fades into another relief rally inside a weakening structure.
