Analyst Wans XRP Price Could Crash Below $1 If Bitcoin Reaches This Level

Overview

Crypto analyst TARA has expressed concerns that the price of XRP could drop below the psychological threshold of $1. This prediction is linked to potential movements in Bitcoin’s price, which she believes could significantly influence XRP’s trajectory.

XRP’s Potential Price Movements

TARA has indicated that if Bitcoin were to experience a crash, specifically dropping to $52,200, it could result in XRP falling to its support level at $0.87. This level is significant as it corresponds with both the .786 support and the .618 extension, as well as a gap left from a prior liquidation event on October 10. TARA’s analysis suggests a direct correlation between Bitcoin’s price action and XRP’s performance, highlighting the broader impact of Bitcoin’s fluctuations on altcoins.

In her analysis, TARA noted that XRP has recently encountered resistance at $1.53, which aligns with the textbook .382 resistance level. She observed that the current waves on Bitcoin appear incomplete, indicating that XRP may be poised for another downturn in the short term. TARA predicts a potential correction for Bitcoin to around $65,800, which could subsequently lead XRP’s price to drop to $1.30 as a temporary support level. However, she anticipates a rebound for XRP, possibly reaching the .5 resistance level at $1.65.

Despite these short-term concerns, TARA remains optimistic about XRP’s long-term prospects. She mentioned that the macro Wave 3 targets for XRP could range between $7 and $9, suggesting that the altcoin might have already reached its bottom around the current price levels. Nonetheless, TARA emphasizes that Bitcoin’s price movements continue to be a significant driver of XRP’s price action and the overall crypto market.

Two Potential Scenarios for XRP

Another analyst, CasiTrades, has provided insights into the current state of XRP, suggesting that it is in a Wave 4 relief phase. This phase could potentially lead XRP toward the .5 retracement and macro .618 near $1.65, which she identifies as a critical resistance level. CasiTrades cautioned that if XRP fails to establish $1.65 as support, it could trigger a downward movement targeting $1.09 or even $0.90.

CasiTrades also noted that the recent relief bounce has reset the Relative Strength Index (RSI), indicating that a drop to these lower levels could create a bullish divergence, presenting exceptional long-term buying opportunities. Conversely, if XRP manages to reclaim $1.65, she advises waiting for confirmation of a back-test of support before considering a position based on strength. CasiTrades reassured investors that this is not a time for panic selling, as significant lows have already been reached, and there is a possibility that the anticipated final wave down may not materialize.

At the time of reporting, XRP was trading at approximately $1.38, reflecting a decline of over 4% in the preceding 24 hours.

From author

The analysis surrounding XRP’s potential price movements underscores the intricate relationship between Bitcoin and altcoins. As Bitcoin continues to play a pivotal role in determining the price dynamics of cryptocurrencies like XRP, traders and investors must remain vigilant about market trends and sentiment. The provided insights from both TARA and CasiTrades illustrate the complexity of the current market environment and the various factors influencing price action.

Impact on the crypto market

• The potential for XRP to drop below $1 could signal heightened volatility in the altcoin market.
• Bitcoin’s price movements continue to have a significant impact on altcoins, highlighting the interconnected nature of cryptocurrency pricing.
• Analysts’ predictions suggest that the current market may be at a critical juncture, with possible scenarios that could lead to increased buying opportunities or further declines.
• The emphasis on psychological price levels, such as $1 for XRP, illustrates the importance of market sentiment and trader psychology in price movements.
• The discussion of support and resistance levels provides traders with key points to monitor for potential entry or exit strategies.