XRP Price Could Plunge to This Critical Level Before Explosive Rally

Hold onto your hats—or maybe your wallets. XRP is setting up for a classic crypto rollercoaster: a potential stomach-churning dip followed by a rocket ride up.

The Setup for a Shakeout

Market whispers suggest a final flush-out is coming. Analysts are eyeing a specific, historically significant support zone as the likely floor before the real party starts. It's the kind of move that punishes the weak hands and rewards those with diamond fingers and a strong tolerance for red candles.

Why the Pain Before the Gain?

Think of it as the market's brutal efficiency at work. To fuel a sustainable, major rally, excess leverage and late-to-the-game speculators often need to be cleared out. A sharp drop to a key level does just that—creating a solid foundation of 'real' buyers rather than shaky, over-leveraged bets. It's the financial equivalent of pruning a tree for stronger growth, though it feels a lot less pleasant when your portfolio is the one getting trimmed.

The Rally Catalyst Waiting in the Wings

Once that support level is tested and holds, the narrative flips. The same factors that caused anxiety on the way down—regulatory clarity, adoption milestones, macro tailwinds—become rocket fuel on the way up. The bounce from the depths tends to be violent, catching everyone who sold at a loss completely off guard. It's a pattern as old as markets themselves, just with more memes and 24/7 trading.

Timing the Untamable Beast

Predicting the exact bottom is a fool's errand, reserved for charlatans and lucky guessers. The smart play isn't about catching the falling knife, but recognizing when it's safely stuck in the floor. Watch for a loss of momentum on high volume at that critical level—that's the market's signal it's run out of sellers.

So, is XRP about to offer a classic 'buy the fear' opportunity? All signs point to a volatile path ahead, setting the stage for what could be its most dramatic chapter yet. Just remember, in crypto, the road to massive gains is often paved with a few spectacularly terrifying potholes—consider it the sector's version of an initiation fee.

2026 began on a bullish note for XRP as the token price rallied nearly 22% to a high of $2.41. But the rally didn’t last long, and the price has now fallen back NEAR $2, raising concerns about XRP’s long-term direction.

Crypto trader CoinsKid, who has a long history of predicting XRP bid zones accurately, believes XRP could dip to $1.14 before rallying toward $27.

XRP Price To Face Short-Term Pullback

According to the CoinsKid analysis, XRP turned bearish after losing the key $1.90 support level, which confirmed a breakdown in market structure. He believes XRP is now moving through a macro ABC correction, with the C-wave still in progress.

CoinsKid notes that previous bullish divergences in bitcoin have not yet appeared, signaling that the market may not have fully bottomed. He said that such corrections are common when prices approach long-term resistance levels, including previous all-time highs. 

He notes that XRP has entered a phase where emotional trading is high, but data signals show the correction may not be over.

Therefore, in the short term, XRP is seeing pullbacks as part of a descending triangle pattern, which could shake out weak holders before the next major rally begins.

Ripple XRP Key Buy Zone

Based on historical price patterns and Fibonacci levels, CoinsKid identifies $1.14 as a major bid zone. He points out that XRP has repeatedly respected similar zones during past corrections, including moves to $0.29, $0.38, and $1.64, each followed by strong rebounds.

This level aligns with previous accumulation ranges, where long-term buyers stepped in before large impulsive rallies began.

Long-Term XRP Price Forecast

Despite short-term bearish pressure, CoinsKid remains bullish on XRP’s long-term outlook. Once the correction ends, he expects XRP to break through resistance and enter a new impulsive phase, which could push prices toward double-digit levels, with a long-term target near $27.

He says this outlook stays valid as long as XRP holds its key long-term support level.

Supporting this bullish outlook is the growing institutional interest in the spot XRP ETF, which has seen a continued inflow. According to SosoValue XRP ETF has recorded a total inflow of $1.49 billion.