XRP Price Must Defend This Level To Avoid 50% Breakdown, Analyst Warns

Overview

As the cryptocurrency market begins to recover from a recent pullback, XRP is facing significant pressure to maintain its current price levels. Analysts have indicated that if XRP fails to defend these levels, it could experience a substantial decline, potentially dropping to levels not seen in over a year.

Recent Price Movements

XRP has been attempting to recover from a recent dip, but on Monday, it recorded a 6% drop, hitting a multi-week low of $1.88. This decline followed the loss of crucial support at $2.00, which had been a focal point for the cryptocurrency over the past month. Notably, XRP had been trading within a range of $2.00 to $2.25, only breaching this lower boundary during a pullback in late November.

The cryptocurrency has shown resilience in the past, bouncing from the $1.85 to $1.90 support zone after major corrections since the breakout in November 2024. However, the recent price action has raised concerns among market observers. Ali Martinez highlighted that XRP has fallen below its one-year price range of $1.92 to $3.27, suggesting that this could lead to a potential 50% drop if the current levels are not defended.

Another analyst, Cheds Trading, noted that XRP is “flirting with a high time frame breakdown,” suggesting that the cryptocurrency may be forming a double top pattern. If XRP loses the $1.88 level, which serves as the neckline of this pattern, it could result in a measured move towards the $1.00 range, a price point that has not been seen in over a year.

Analyst Perspectives

Despite these warnings, some analysts maintain a more optimistic outlook for XRP. Trader Niels indicated that the altcoin is currently showing signs of bullish divergence on the daily timeframe, suggesting that it could soon move to higher levels. According to Niels, if XRP breaks above the $2.20 resistance, it could see a significant increase towards the $2.80 to $3.00 range.

Similarly, analyst ChartNerd pointed out that XRP appears to be following a similar price action pattern to that observed in late 2023 and early 2024, which preceded a major breakout. This accumulation phase of bouncing between price boundaries could suggest that XRP may continue to consolidate before entering another markup phase.

From author

The current situation surrounding XRP illustrates the volatility and uncertainty inherent in the cryptocurrency market. The varying opinions among analysts reflect the complex dynamics at play, as some see potential for recovery while others warn of significant risks. The price movements and technical patterns observed in XRP’s trading history provide insight into the potential future trajectory of the cryptocurrency.

Impact on the crypto market

• XRP’s recent price declines highlight the ongoing volatility in the cryptocurrency market, affecting investor sentiment.
• The warnings from analysts regarding potential breakdowns could lead to increased caution among traders.
• The contrasting views on XRP’s future performance may influence trading strategies and decisions in the broader market.
• A failure to maintain key support levels could trigger broader market reactions, impacting other cryptocurrencies.
• The ongoing institutional interest in XRP suggests that despite short-term fluctuations, there remains a foundation of support for the asset.