Crypto analyst ChartNerd said on August 3 that XRP’s prolonged weakness could be setting the stage for a major market repricing.

With the token testing long-term support near $1.06 after months of negative sentiment, the market watcher argued that the current decline is part of a wider crypto correction rather than a sign of weakness in Ripple’s fundamentals.

Watching for Larger Moves as XRP Tests Support

ChartNerd wrote that being a macro XRP bull during the current downturn has been difficult, especially as altcoins have underperformed Bitcoin (BTC) for much of the cycle.

He stressed that nothing is inherently wrong with the asset and described the current period as a normal correction within a larger trend.

‘The next few months are setting the stage for the next market repricing. Maybe the biggest yet,” he stated.

His focus is on XRP’s technical structure, with the token again testing the $1.06 support area after failing to break above its daily 20 EMA near $1.08. The 50 EMA near $1.12 is another resistance level, as is $1.16 if buyers regain control.

According to ChartNerd, XRP’s current price action is taking place inside a falling wedge pattern while approaching a six-year support zone that in the past came right before a big upward movement. However, the analyst also warned that a move below the $1 support would not be unexpected, considering the prevailing market structure, but painted it as a “golden ticket” entry point.

“The lower it goes, the better the long-term opportunity becomes,” he said. “It’s all about perspective.”

Analyst EGRAG CRYPTO had earlier identified the $1.05 area as a “battlefield” for the asset, with a successful defense potentially taking it back toward $1.10 and higher, while a breakdown below that zone could expose XRP to the $1 region ChartNerd spoke about.

Long-Term Thesis Facing Short-Term Pressure

The #6 biggest cryptocurrency was trading around $1.07 at the time of writing, down 1% in 24 hours and nearly 3% over seven days. It has also lost about 24% of its value in the past three months, keeping it more than 70% below its July 2025 all-time high near $3.65.

And that weakness is present despite developments around the Ripple ecosystem, including an announcement by the blockchain payments firm that it has invested in Zilo and Licuido, two companies focusing on tokenized funds and institutional asset infrastructure.

Institutional interest has also been positive, with spot XRP ETFs recording $27 million in net inflows in July, although that figure was markedly lower than June’s $60 million and May’s $132 million, highlighting XRP’s struggle to hold higher levels after its mid-July rally.

Source: CryptoPotato