XRP Price Nears Key $1.00 Test as Analyst Warns of Drop to $0.87

• XRP is testing the key $1.00 support as analysts warn of a possible drop toward $0.87.
• Tight price action and balanced liquidations suggest volatility could soon return to XRP.
• Weak spot activity and thin liquidity leave XRP vulnerable to a sharp breakout in either direction.

XRP is approaching a key technical level after losing nearly 5% over the past 24 hours. One analyst believes the token could be headed for a deeper correction toward $0.87 as bearish wave patterns continue to develop.

At the time of writing, XRP traded at $1.05. The token was down 4.7% over the past day and 7% over the past week, according to CoinMarketCap. Its monthly gain has shrunk to just 0.43%, while it remains down 42.68% year-to-date.

Expect $1.00 to Give Way

Technical analyst Casi said XRP continues to follow the previously outlined bearish “purple scenario”. So far, the price has moved almost exactly as expected.

According to Casi, the $1.09 support level produced the anticipated relief bounce before running into strong selling pressure. That rejection pushed XRP back toward a major support zone.

The analyst now expects a break below $1.00 as part of a developing Elliott Wave structure.

If that scenario plays out, XRP could first retest the macro 0.786 Fibonacci retracement level. The decline could then extend toward a broader support area near $0.87.

Casi identified $0.87 as the primary downside target. Several projected subwaves on the chart also point to that level.

The analyst described the current phase as critical for confirming the bearish outlook. Casi added that the next move could be “violent” because price has remained tightly compressed.

Liquidations Continue to Hit Both Sides

Meanwhile, CryptoQuant contributor CryptoOnchain also sees signs that a major move may be approaching. The analyst said XRP has spent the past two weeks trapping both long and short traders without establishing a clear trend.

XRP closed July 26 at $1.112, almost unchanged from $1.111 two weeks earlier. Despite the limited price movement, the market experienced repeated liquidation events in both directions.

On July 21, XRP climbed to $1.143 and triggered $2.35 million in short liquidations. Three days later, the price reversed to $1.091, wiping out $1.89 million in long positions.

Average long liquidations during the period reached about $647,000. That was 19% above the quarterly average. Meanwhile, average short liquidations rose to roughly $518,000. That marked a 141% increase from the quarterly average.

Volatility Builds as Trading Range Tightens

According to CryptoOnchain, XRP has remained stuck in a narrow $1.09-$1.14 trading range while realized volatility continues to decline.

Open interest has stayed elevated at around $420 million. Leverage remains near 0.164, while perpetual funding rates are almost neutral at roughly 0.001.

Those metrics suggest neither bulls nor bears have a clear advantage.

The analyst also pointed to weak spot market activity on Binance. Exchange inflows and outflows have dropped about 98% below their monthly averages. Active deposit addresses have also fallen more than 96%.

The slowdown has created thin liquidity conditions, making the market more vulnerable to sharp liquidation-driven price swings.

CryptoOnchain said these conditions do not point to a specific direction. Instead, the combination of compressed price action, balanced liquidations, and weak spot activity represents “stored energy” that has historically preceded a major breakout.

Whether that move favors buyers or sellers will likely depend on which side begins to dominate liquidations or whether spot demand returns to break the current stalemate.

Related: XRP Price Analysis: Analysts Watch $1.13-$1.18 Breakout for Rally to $1.30