XRP has swept the Sept. 16 lows and rebounded from a key fair value gap, but the broader structure still leaves room for another decline toward the $1 region if buyers fail to reclaim lost resistance.
XRP currently trades around $1.28, recovering from the latest test of the lower $1.20s. The bounce comes after price pushed beneath the previous September low, taking out liquidity that had remained untouched for several weeks.
The sweep creates the conditions for a short-term reaction, but XRP still needs to recover higher fair value gaps before the move can be treated as a meaningful reversal.
XRP Sweeps the Sept. 16 Low
The most important development is the move beneath the horizontal low that had remained intact since Sept. 16.
In technical terms, those lows represented a pool of liquidity beneath the market. XRP briefly traded through that area before rebounding, effectively clearing the previously unswept low.
The reaction places XRP back above the lower boundary of an immediate fair value gap around the mid-$1.20s.
A fair value gap, or FVG, is an imbalance created when price moves rapidly enough that adjacent candles leave an area with relatively little two-way trading. These zones can later attract price as the market attempts to rebalance the earlier move.
XRP’s latest recovery follows another test of the broader $1.10-$1.29 support region, which has also been identified in recent technical structures as a key area for the next larger move. XRP faces a second test of key support
Current Bounce Still Needs Confirmation
The first overhead FVG sits immediately above current price, roughly around the $1.27-$1.32 region.
Reclaiming and holding this area would be the first indication that the sweep has produced more than a temporary relief move.
That level also overlaps with recent resistance. XRP previously emerged from an unusually tight volatility compression around $1.25, with $1.27 identified as the first bullish confirmation level. XRP’s recent Bollinger squeeze setup
Above that, another larger imbalance remains around approximately $1.42-$1.49.
XRP would need to recover both areas before the structure begins to resemble a sustained trend reversal rather than a bounce within the broader decline.
A larger horizontal resistance area also sits around $1.54-$1.56, where previous rallies encountered substantial selling pressure.
Lower FVG Extends Toward $1
The downside structure remains important because the largest unfilled fair value gap on the chart stretches from roughly the low-$1.20s toward the $1 psychological level.
That creates a sizeable zone beneath current price where another decline could potentially find support.
From the current price near $1.28, a move to $1 would represent a decline of approximately 21.9%.
This area also overlaps with other bearish XRP scenarios. The Crypto Basic previously highlighted lower support around $1.10 and a conditional move below $1 if key support fails.
At the same time, a separate Elliott Wave structure has placed the $1.20-$1.25 region near the potential end of a larger correction, showing why the current area remains an important battleground.
For now, the Sept. 16 liquidity sweep has produced the reaction expected from a key support region, but XRP has not yet reclaimed enough territory to confirm a bottom.
The next observable test is whether XRP can hold above the swept lows and reclaim the $1.27-$1.32 FVG. Failure to do so would leave the lower imbalance—and potentially the $1 region—open for another test.