XRP trades at $1.08, analyst highlights $1.09 as critical support with potential drop to $0.87

Crucial support and possible downside scenario

While the current price structure keeps hopes of a recovery for XRP alive, Diana believes the correction cycle may not be over yet. Drawing on Elliott Wave analysis, she notes there is potential for one more sharp downward move before any sustained rebound can take hold.

If the $1.09 support zone fails to hold, the next significant downside target is seen in the $0.90 to $0.87 range. This area also aligns with the deeper 0.854 Fibonacci retracement, highlighting its additional importance from a technical perspective.

Mini glossary: A Fibonacci retracement is a technical analysis tool used to identify potential support or resistance levels based on previous price swings. Elliott Wave analysis is a method that interprets market movements as repeating wave patterns.

In Diana’s assessment, the $1.09 level stands out as the main line of defense in the short term. If this zone is breached, the $0.90 to $0.87 area could mark the final leg of the correction.

Potential short-term rebound scenario

If buyers manage to defend the $1.09 territory, Diana sees room for XRP to rise to $1.11, and possibly to $1.18 in the short term. However, she cautions that such a move would not confirm the end of the correction on its own and might only represent a temporary bounce.

As a result, two levels take center stage in the near-term outlook: $1.09 as the critical support and $0.87 as the potential final correction target before a more significant recovery.

Shifts in exchange flows draw attention

Binance exchange flow data shared in the report offer further insights into shifting market sentiment. XRP withdrawals climbed to 53.8%, while deposit activity fell to 46.1%. This marks one of the most pronounced imbalances in recent months.

Increased withdrawals from exchanges suggest that investors are moving their XRP into personal storage rather than leaving assets on trading platforms. In market analysis, this is often interpreted as an accumulation strategy rather than simple short-term profit-taking.

According to Binance data, the rise in XRP withdrawals to 53.8% and drop in deposits to 46.1% could signal that market participants are transferring their assets off exchanges.

With XRP still hovering near its critical support area, the market’s focus is firmly on the $1.09 and $0.87 levels. Whether the price sees a short-term rebound or a further downward leg will soon become clearer as traders respond to these defining zones.