According to the compact XRP compression range analyzed by Martinez, this price fluctuation was not unexpected. He pointed out in earlier charts that the key support level is at $1.35, while the resistance level is at $1.45. When the price breaks above $1.45, the target will shift to $1.80; however, if it falls below $1.35, it may approach $1.
It is important to note that this breakout does not guarantee that the price will fully reach $1. Technical targets depend on subsequent trends, trading volume, Bitcoin's movements, overall altcoin liquidity, and whether buyers can quickly return to the breached range. Nevertheless, the current structure is more defensive than when XRP was above the triangle.
$1.35 Becomes the Key Level for Bull Market Recovery
The significance of the $1.35 area lies in its transition from support to a potential resistance line. If XRP cannot rebound and stabilize above this level, traders may view the bounce as a test rather than a new upward momentum.
The current downward range is near the latest intraday low of about $1.31. If this area is breached, XRP will face broader breakdown targets, approaching $1, especially in a scenario where Bitcoin remains weak and large-cap altcoins lack liquidity. This would signify a deeper correction from the previous discussions about breaking $1.45 and may delay any rapid return to $1.80.
While a bullish trend can still be seen, it now requires repair. XRP must first reclaim $1.35, then re-enter the previous range, and clear the $1.45 to $1.46 area, which had restricted upward attempts multiple times since May. Without this sequence, the market may continue to view XRP as a failed breakout rather than a confirmed bullish continuation.
Bitcoin and liquidity determine subsequent trends
This is the main risk currently facing XRP. If leveraged longs are liquidated, liquidity decreases, and traders no longer defend the nearby support levels, a bearish technical breakout may accelerate. If Bitcoin stabilizes and XRP reclaims the breached range with strong spot trading volume, the price could rebound quickly.