XRP Price Analysis: Token Tests $1.25 Fibonacci Support as Channel Resistance Holds

XRP has slipped toward the $1.25 support zone after failing to clear the upper boundary of its short-term descending channel, keeping the token under persistent selling pressure. ## Fibonacci Support Tested as Sellers Maintain Control XRP's broader retracement follows a rally from its August low of $0.99 to a peak of $1.70, which stalled just beneath the major $1.70-$1.80 supply zone. The token subsequently lost its 0.5 Fibonacci retracement level at $1.34 earlier this month and drifted down toward $1.25, a level that coincides with the 0.618 Fibonacci retracement and a mid-September demand area. Yesterday, the price briefly dropped to $1.20, tagging the 0.702 Fibonacci level, before buyers moved it back to $1.25. The daily candle closed with a long lower wick, signaling buy-side interest, though confirmation of a successful defense remains pending. The pressure on XRP comes as altcoins slide following recent market shocks, even as Ripple secures major regulatory progress. ## Descending Channel and Key Technical Levels On the 4-hour chart, XRP has traded inside a descending channel since its late-September peak near $1.65. The latest recovery attempt was rejected at the channel's upper boundary around $1.33, reinforcing the sequence of lower highs throughout October. Key levels to monitor include: - Immediate Support: $1.25 (0.618 Fibonacci) and yesterday's low of $1.20 (0.702 Fibonacci). - Downside Risk: A decisive daily close below $1.20 exposes the $1.10-$1.14 demand zone, which overlaps with the 0.786 Fibonacci retracement. - Lower Channel Target: A breakdown below $1.20 could pull prices toward the lower channel boundary near $1.17. - Upside Targets: A push above $1.28 opens the way toward $1.30, followed by the 0.5 Fibonacci level at $1.34 and the $1.40 supply zone. ## Why It Matters XRP's failure to clear the $1.33 resistance demonstrates that sellers retain firm control of the short-term structure. Protecting the $1.20 level is vital for buyers, as breaking below it risks wiping out the entire advance built since the $0.99 August low. Market participants should watch for a sustained move above $1.28 to indicate potential relief from the current downward trend.