XRP is not expected to slide below $1, according to a market analyst who sees a floor around $1.20 before any sustained recovery begins. The level, described as a potential final washout, has historically preceded major rallies for the cryptocurrency.
The $1.20 washout signal
The analyst points to the $1.20 mark as a key support that could act as a last shakeout for weak hands before prices turn higher. Past market cycles show similar patterns where a sharp dip to that zone gave way to strong upward moves. The forecast comes as XRP trades under pressure, with large institutional buyers unable to halt the slide.
Geopolitical and market headwinds
Near-term risk for XRP stems from escalating tensions in the Middle East. Potential disruptions to crude oil supply, falling oil inventories, and the conflict between Iran and Israel are weighing on risk assets globally. Even if a peace deal materializes, the analyst notes that supply chains could take months to recover, keeping markets on edge.
Beyond geopolitics, the US bond market remains in a prolonged drawdown while the S&P 500's gains are concentrated in a handful of stocks with thin breadth and historically high valuations. The analyst advises skipping overheated equities and instead focusing on assets that have already undergone serious corrections — like XRP.
Long-term outlook and strategy
Despite the short-term pressure, XRP's long-term bullish case remains intact. The analyst expects a major rally later in 2026 and plans to keep buying XRP on weakness, viewing current fear and selling as a setup for outsized gains. The strategy is to accumulate during dips, betting that the macro environment will eventually shift in favor of the token.
For now, the analyst's key question is whether the $1.20 floor will hold amid the current mix of geopolitical uncertainty and tight financial conditions. The answer may not be clear until oil markets settle and bond yields find a new equilibrium.
