XRP has climbed back above the $1.40 mark 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 critical support zone at $1.30 remains under pressure, and broader market forces—particularly Bitcoin’s (BTC) price action—could determine what happens next.
XRP Locked Between $1.30 Support And $1.50 ResistanceAccording to Daodu, a key reason XRP has continued to defend this area is that it is slightly lower, around $1.27. On-chain cost basis data indicates that roughly 443 million XRP were accumulated at that price level.
As the market approaches this entry point, many of these holders have added to their positions, creating buying pressure that has consistently pushed the price back above $1.30.
Bitcoin And Middle East Tensions As Key ThreatsBitcoin stands out as the most significant variable. XRP and BTC are currently moving in close alignment, with a reported correlation of 0.84. Historically, XRP has tended to magnify Bitcoin’s price swings by roughly 1.8 times.
Geopolitical factors are also contributing to market fragility. Rising tensions in the Middle East have already sparked risk-off sentiment across the crypto market in early March.
BTC As The Key To Break $1.50?On the upside, a sustained breakout above $1.50 would likely require more than just stability in Bitcoin. Historically, altcoins gain momentum when Bitcoin advances decisively, drawing fresh capital into the broader market.
Between $1.58 and $1.60 lies a substantial supply zone. Approximately 2 billion XRP were purchased at those levels, leaving many holders underwater for months.
As the price approaches that range, investors seeking to exit at breakeven could generate heavy selling pressure, the analyst reported. Clearing $1.50 would signal renewed strength, but absorbing supply closer to $1.60 may prove to be the more difficult challenge.
At the time of writing, XRP was trading at $1.41, marking a 3% loss over the previous 24 hours.
Featured image from OpenArt, chart from TradingView.com
