Is XRP Signaling a Bottom After Dropping Below $1?

XRP has struggled lately, dropping below the psychological $1 support level multiple times over the past week. This decline hits a 21 month low and marks a 70 percent drop from the all time high set 13 months ago. While the price is trying to recover, the market structure remains weak after months of lower highs and lower lows.

Despite the bearish trend, some positive indicators are emerging. The number of wallets holding at least one million XRP grew by 32 in recent months, and active address counts have jumped from 24,000 to over 43,000. These figures suggest that while the price is down, usage and interest in the network are rising.

Market analysis remains divided on whether the bottom is set. Data from Binance shows the Taker Buy/Sell ratio at a multi month low, meaning aggressive sellers still outweigh buyers. Furthermore, high futures positioning could trigger more volatility if liquidation cascades occur.

While a bottom could be near, caution is advised. Analysts point to support at $0.94 and $0.95 as critical levels. If those fail, the price could slide toward $0.80. For now, it is too early to call a definitive bottom, but the recent dip might represent a local point of capitulation.