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Key Insights:
- XRP may drop to $1.7 if bearish momentum continues, with key support at $1.88 and $1.91.
- Holding above $2.35 could push XRP towards $3, with resistance at $2.44 and $2.99.
- If bullish, XRP could target $5 and $8, aligning with RSI nearing an oversold zone.
The XRP price experienced a significant price drop during the first US trading period. The declining XRP price shows that investors hold negative feelings about the market. However, analysts in the market predict XRP could achieve value recovery in the future. However, analyst CasiTrades has warned of a possible crash to $1.7.
XRP Price Drops 4% as Selling Pressure Increases
XRP price has declined by nearly 4% today, trading around $2.2. Its 24-hour trading volume has also dropped by 29% to $6.86 billion. The Relative Strength Index (RSI) is nearing the oversold zone, showing increased selling pressure. Many investors worry that further losses may follow if selling continues.
Large investors, known as Ripple whales, have dumped over 370 million XRP recently. This sell-off has added to the negative market sentiment. CoinGlass data also shows a 2% drop in XRP’s Futures Open Interest. The declining short-term price performance metrics show that XRP investors have reduced their faith in the token.
Will XRP Price Drop Below $2?
The analysis of Crypto analyst CasiTrades shows that XRP price correction approaches its final phase. The analyst anticipates that XRP token values will decline to $1.97 after which it will reverse upward. One trader in the market foresees XRP price reaching $1.75 because of a detected Head and Shoulders pattern. The bearish Head and Shoulders pattern confirms upcoming negative price action.
However, CasiTrades does not support the $1.75 projection using subwave analysis methods. According to CasiTrades, higher-timeframe analysis demonstrates bullish divergence. XRP price signals the start of a potential recovery phase after reaching its lowest point. Meanwhile, investors follow Bitcoin recent movement to determine their next course of action.
The Bitcoin price is currently testing support at the 0.382 of the Fibonacci level. If there is a bullish movement in Bitcoin price, then XRP price also might bounce back. However, if Bitcoin price falls, XRP price might reach a low of $1.75 or even below that figure. Earlier, analysts predicted its correction at $1.6.
Key Support and Resistance Levels for XRP Price
Crypto analyst EGRAG CRYPTO states that XRP price must hold above $2.35 to stay in a bullish trend. If this support holds, XRP could target the $3 mark soon. Breaking above $3 may trigger a larger rally. However, a close below $2.2 could increase the risk of a deeper correction.
Moreover, EGRAG CRYPTO highlights $1.7 as a key support level if bearish momentum continues. If XRP price drops below this level, it may struggle to recover in the short term. Investors must watch price action closely to gauge market direction. A recovery above key levels could restore confidence in Ripple token potential.
What Happens If XRP Price Enters a Bullish Cycle?
Interestingly, analyst Dark Defender predicts XRP price may regain bullish momentum as RSI nears the oversold zone. He suggests that if XRP price holds above $2.35, the first wave of recovery could push it to $3. A breakout above $3 could lead to further gains in the coming weeks.
If momentum strengthens, XRP price could target $5 and later $8. This prediction aligns with previous bullish forecasts. However, resistance levels at $2.44, $2.99, and $5.85 may challenge the price recovery.
Dark Defender also highlights $1.88 and $1.91 as key support levels. Holding these levels could prevent a deeper drop and confirm bullish strength. The market’s reaction to these support and resistance points will determine XRP’s future trend.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
