Ripple's XRP is testing a crucial demand zone between $1.02 and $1.08 that will likely determine its next major move, according to a July 14 price analysis. The token has been rejected from resistance near $1.22-$1.29 and is now retracing toward this support area, which has underpinned all meaningful rebounds since late June. A breakdown below this level would expose the lower boundary of the descending channel and open the door for a deeper decline.
Descending Channel Caps Recovery Attempts
On the daily chart, XRP continues to trade inside a large descending channel that has contained price action since the start of the year. The asset was recently rejected from the upper resistance region around $1.22-$1.29, a supply zone that has repeatedly capped bullish advances during the downtrend. That rejection occurred near the confluence of the channel's upper boundary and the 100-day moving average, reinforcing the significance of this area.
Following the rejection, XRP has retraced toward the key demand zone around $1.02-$1.08. This region has historically attracted buyers and currently represents the most important support level on the daily chart. As long as the price remains above this area, the market could continue consolidating within the lower portion of the channel.
Short-Term Bearish Pressure Mounts
The 4-hour chart provides a clearer view of recent weakness. XRP rallied aggressively from the lower demand zone but failed to sustain momentum after reaching resistance at the descending trendline and the overhead supply region around $1.22-$1.29. Since then, the asset has produced a series of lower highs and lower lows, reflecting growing short-term bearish pressure.
The market has now returned to the decisive demand zone around $1.03-$1.08, which has acted as the foundation for every meaningful rebound since late June. This area remains the primary level to monitor. A successful defense could trigger another relief rally toward the descending trendline and the $1.22-$1.29 resistance zone, keeping XRP trapped within its broader consolidation structure while preserving the possibility of a larger breakout later.
Conversely, a decisive loss of the demand zone would represent a significant structural deterioration and likely shift momentum firmly back in favor of sellers. For now, the token remains positioned at a critical support area. While the broader trend continues to favor caution below the major moving averages and descending channel resistance, the $1.02-$1.08 demand zone remains the key level bulls must defend to prevent another leg lower.