XRP Plunges 27% in a Week: Key Support Level in Focus

XRP, the payments-focused cryptocurrency linked to Ripple, plummeted over 27% in the week ending March 9, marking its steepest decline since November 2022, according to TradingView and CoinDesk data. This sharp drop has put intense focus on the critical $1.95 support level.

If this key level is breached, further losses could follow, potentially triggering a significant downturn. XRP has been forming a head-and-shoulders (H&S) pattern since December, a bearish indicator that signals a possible trend reversal. The H&S pattern consists of three peaks, with the middle peak being the highest, and a neckline—a crucial support zone connecting the base of the peaks.

A decisive break below this neckline would confirm a bearish shift, suggesting deeper losses. Historically, such breakdowns lead to declines equal to the distance between the neckline and the middle peak, meaning XRP could drop toward 60 cents, a level that served as strong resistance last year.

Bulls must defend the $1.95 level to prevent this bearish scenario. If they fail, selling pressure could intensify, leading to a prolonged downturn. As market volatility rises, traders and investors will closely monitor whether XRP can stabilize or if it is set for another major correction.