XRP at Risk of Sub-$1 Crash as $0.85 Target Emerges

XRP is approaching a critical technical threshold that could define its medium-term trajectory. A prominent crypto analyst has warned that intensifying downside pressure combined with broader market weakness could drag the token below the psychological $1 level, opening the door to a deeper correction toward $0.85.

At the time of writing, XRP is trading near $1.36, already below the level at which the bearish projection was initially issued. The setup now hinges on whether interim support zones hold or fail.

What Triggered the Warning

Crypto analyst Tara flagged the risk of a sub-$1 breakdown in recent commentary on X, outlining a short-term rebound scenario before cautioning that a renewed sell-off remains possible.

According to her analysis, XRP could first stabilize near $1.30, followed by a retracement toward $1.65 a level now acting as resistance. However, she stressed that this bounce would likely precede another leg lower.

“A new low is still possible as far down as $.85,” she warned, identifying deeper macro support near $0.87.

That level corresponds with the .786 Fibonacci retracement of the prior macro move often viewed by technical traders as a final support zone before structural breakdown.

Key Levels to Watch

The technical structure centers around several Fibonacci retracement levels:

Chart projecting $XRP potentially falling below $1 shared by crypto analyst Tara on X on Feb. 7.

• $1.65 – Key resistance during any relief rally
• $1.30 – Interim support during pullbacks
• $1.29 (.618 retracement) – Structural retracement zone
• $0.87 (.786 macro support) – Critical breakdown threshold

Notably, XRP previously tapped the .382 retracement near $1.53 before failing to sustain momentum. The inability to hold higher retracement zones suggests weakening bullish control.

A confirmed break below $1 would not only breach macro Fibonacci support but also violate a major psychological level potentially accelerating downside momentum.

Bitcoin Correlation Adds Pressure

The bearish XRP outlook is closely tied to Bitcoin’s projected path. Tara suggested that if Bitcoin falls toward $52,200 support, XRP could simultaneously test its .786 Fibonacci support near $0.87.

This correlation highlights a broader structural dynamic: XRP’s trajectory remains heavily influenced by Bitcoin’s macro wave cycles.

Historically, large-cap altcoins amplify Bitcoin’s volatility during corrections. If BTC enters a deeper retracement phase, XRP could experience outsized downside relative to its current range.

Exchange-Level Price Discrepancies

The analysis also surfaced notable price differences across exchanges. According to Tara, projected levels vary between Coinbase and Binance, with discrepancies as wide as $0.20 at key zones.

For example:

• $1.11 support on Coinbase equates to roughly $0.87 on Binance.
• Resistance levels near $1.55 differ from Binance’s $1.47 zone.

While such variations do not change macro targets, they complicate short-term trading decisions and may distort technical signals across platforms.

Is This a Structural Breakdown or a Macro Reset?

Despite the near-term bearish tone, the analyst maintains long-term bullish targets of $7 to $9 for XRP, framing any drop below $1 as part of a broader macro wave correction rather than a structural collapse.

The strategic question now becomes:
Is XRP undergoing a final capitulation phase before a larger cycle expansion or is this the beginning of prolonged weakness?

Market structure suggests this correction is one of the deepest within the current cycle. However, deep corrections are not uncommon before major impulse waves in crypto markets.

Competitive & Industry Context

XRP’s vulnerability comes at a time when the broader altcoin market is facing liquidity tightening and fading speculative momentum. Ethereum and other large-cap tokens have also struggled to reclaim key resistance levels, reflecting broader risk-off sentiment.

If Bitcoin fails to stabilize, the entire altcoin complex could see extended retracement phases.

However, historically, severe altcoin drawdowns often precede high-beta recovery phases once Bitcoin resumes upward momentum. The timing of that transition remains uncertain.

What’s Next

The immediate focus is on whether XRP can hold the $1.30 support zone and attempt another move toward $1.65 resistance. Failure to sustain higher lows would likely shift attention toward the $0.87 macro support.

A decisive break below $1 could trigger increased volatility and forced liquidations, particularly in leveraged positions.

For now, XRP stands at a technical crossroads. The next major move will likely depend less on isolated chart patterns and more on broader crypto market direction particularly Bitcoin’s ability to defend its projected support zones.