XRP broke above $1.40 this week, a level that previously acted as resistance, but analysts warn that the rally does not eliminate the risk of a deeper pullback.
The cryptocurrency’s most important support zone at $1.30 remains under pressure, and broader market forces, particularly Bitcoin’s (BTC) price action, could determine what happens next.
XRP is locked between $1.30 support and $1.50 resistance
Recently reportanalyst Sam Daodu described $1.30 as XRP’s most tested support level in 2026. Since February, the token has repeatedly dipped into the low $1.30 range, only to find buyers before the decisive breakout.
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According to Daodu, the main reason for XRP’s protection is this zone, which is slightly lower, around $1.27. Data based on the value of the chain shows that around 443 million XRP have been accumulated at this price level.
As the market nears this entry point, many of these owners added to their positions, creating buying pressure that pushed the price steadily above $1.30.
Currently, Daodu sees XRP trading in a well-defined range, with $1.30 serving as the floor and $1.50 as resistance. The analyst said that a significant change in the trend would require a break outside of one of these levels, and the direction of the move would likely depend on it. external catalysts.
Bitcoin and Middle East tensions as major threats
Bitcoin stands out as the most important variable. XRP and BTC are currently moving in close sync with a reported correlation of 0.84. Historically, XRP has tended to outperform Bitcoin’s price volatility by about 1.8 times.
In practical terms, this means a 10% reduction Bitcoin could translate into an 18% drop in XRP. Daodu warns that if Bitcoin falls below $60,000 again, XRP will follow regardless of the token’s individual fundamentals or technical structure.
Geopolitical factors also contribute to market volatility. The escalation of tensions in the Middle East already created a sense of danger in the crypto market in early March.
If the situation worsens, Daodu said investors may first reduce exposure to more speculative assets, creating additional pressure. altcoins such as XRP.
BTC as the key to breaking $1.50?
On the other hand, a sustained break above $1.50 would likely require more than just Bitcoin stability. Historically, altcoins gain momentum when Bitcoin strongly advances, drawing new capital into the broader market.
Daodu states that XRP is no exception; a strong upward move in BTC could provide the tailwind the altcoin needs to move forward high level of resistance.
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Between $1.58 and $1.60 is an important supply zone. Around 2 billion XRP were bought at these levels, leaving many holders stranded for months.
The analyst reports that when the price approaches this range, investors who want to break out of the loss can create intense selling pressure. Clearing $1.50 shows renewed strength, but absorbing supply to $1.60 may be a more difficult challenge.
At the time of writing, XRP was trading at $1.41, representing a 3% loss over the past 24 hours.
Featured image from OpenArt, chart from TradingView.com
