XRP is increasingly likely to retest the upper boundary of a declining channel it broke in August last year, drawing attention to whether the current correction ends here or leads to further declines.

The key support level for XRP on the weekly chart is currently around $1.1917, blockchain outlet The Crypto Basic reported on Wednesday.

XRP has faced selling pressure since last week, and losses widened this week after the U.S. consumer price index (CPI) came in higher than expected. XRP has fallen about 14.5 percent since last week and is now testing support around $1.30. That is about 9 percent above the $1.1917 trendline.

The level the market is watching is the breakout area from August 2026. During a rally in August last year, XRP broke above the upper boundary of the declining channel at $1.3870. It then rose to $1.70 before retreating. Whether the former resistance has turned into support has emerged as a key factor in the current correction.

The declining channel formed after XRP hit an all-time high (ATH) of $3.66 in July 2025. After that, the price made lower highs on each rebound, and those successive peaks formed the channel’s upper trendline. XRP met resistance at $3.05 in October 2025, and a rebound in January 2026 also stalled at $2.41. Both levels coincided with the upper trendline.

A similar pattern appeared in September last year. XRP slid to $1.25, falling to the channel’s upper boundary, but held that area and rebounded to $1.65 by late September. With the recent decline, XRP is again testing the upper boundary.

The key is whether XRP can defend $1.1917. If it falls to that level but holds above it, the current downtrend could end, allowing a rebound or sideways movement. If $1.1917 breaks, expectations for a recovery based on the August 2026 breakout could weaken and selling pressure could increase.

In that case, the next support is around $0.98, the low from August 2026. If $0.98 also fails to hold, $0.8941, where the lower Bollinger Band sits, is cited as the next support zone. XRP’s short-term direction is expected to hinge not simply on whether prices rebound, but on whether the August breakout area can again act as support.