TLDR
- XRP faces a critical support level at $2.70 which must hold to sustain its uptrend.
- A breakdown below the $2.70 support could signal a deeper retracement and weaken the market structure.
- The Elliott wave pattern suggests that XRP may have one more push higher, possibly reaching $4 to $5.
- Bearish divergences on higher time frames indicate slowing momentum, raising concerns of a potential downturn.
- Sentiment indicators show a misalignment with price action, which could signal the end of the current bullish cycle for XRP.
Crypto analyst StephIsCrypto recently analyzed XRP’s current market position, emphasizing critical levels and potential risks for investors. The strategist outlined an uptrend but highlighted that the support level at $2.70 remains key to sustaining momentum. A breakdown below this threshold could signal a deeper correction, potentially leading to losses for many investors.
Critical Support at $2.70 for XRP
StephIsCrypto pointed out that the $2.70 range is a crucial support zone for XRP.
“As long as XRP does not record a weekly close below this level, the outlook remains bullish,” the analyst stated.
If XRP breaks below this zone, however, it could trigger a shift in market structure, weakening the uptrend.
The analysis also noted that while minor dips below $2.70 may not be concerning, consistent closes beneath this level would signal weakness. A sustained decline below $2.70 could lead to a deeper retracement, where XRP might temporarily fall toward the $2 mark. According to the strategist,
“The market structure could deteriorate if this support level fails to hold.”
Long liquidation data also suggests a higher risk of a short-term long squeeze. This increase in liquidations may push XRP toward the $2 range before the price resumes its upward trend. However, a breakdown below $2.70 could lead to significant losses for investors who rely on the continued uptrend.
Elliott Wave Pattern Points to Further Upside, but Risks Loom
StephIsCrypto reviewed XRP’s price chart and identified an Elliott wave pattern, suggesting that XRP might not have completed its impulsive sequence.
“Despite having five visible waves, the structure allows for a potential push higher, reaching $4 to $5,” the analyst explained.
If this upward movement materializes, it could mark the final leg of the current cycle before a major correction sets in.
#Xrp.. most will lose everything… pic.twitter.com/Z771UIYwGE
— STEPH IS CRYPTO (@Steph_iscrypto) September 24, 2025
However, the analyst warned that bearish divergences are appearing on higher time frames, particularly on the weekly and monthly charts. These divergences, where price makes higher highs but momentum indicators like RSI form lower highs, suggest slowing momentum. This pattern mirrors the setup seen in 2021, which preceded a dramatic 80% decline in XRP’s price.
The analysis also suggested that the market might be entering the final stages of the current bullish cycle. While XRP could still reach $4 to $5, a prolonged correction may follow soon after. This scenario raises concerns for investors who may be caught in the tail end of the cycle.
Parallels to Previous Cycles and Sentiment Concerns
StephIsCrypto compared XRP’s 2017 cycle to that of the asset, which experienced multiple impulsive moves followed by extended periods of sideways trading. The current market structure mirrors that pattern, with consolidation phases before a potential final rally,” the analyst noted. This suggests that XRP may follow a similar path toward a final upward move before a significant downturn.
The crypto fear and greed index also shows concerning trends. During the 2020–2021 bull market, XRP’s price made higher highs, but sentiment indicators failed to confirm this strength.
“A similar divergence between price action and sentiment is emerging again,” the analyst warned, which could indicate a looming correction.
