XRP Price Faces Possible Decline, But There's Still Optimism

Recent analysis indicates that XRP may be on the brink of a significant price drop, potentially falling below the crucial $2 mark. However, there are signs of hope as experts identify key price levels for XRP to reclaim to mitigate this bearish sentiment.

Key Takeaways

Crypto analyst CryptoInsight warns that XRP's price might experience another drop.
The altcoin needs to surpass the $2.30 mark to reverse the current bearish outlook.
Long-term perspectives remain optimistic, with predictions of a potential all-time high.
CasiTrades identifies crucial support and resistance levels, suggesting two possible market scenarios.
As of now, XRP is trading at approximately $2.08, reflecting a 4% decline in the past day.

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XRP Price Risks a Significant Drop

Analyst CryptoInsight has indicated that XRP's price could soon experience another downturn, possibly dropping below the critical psychological level of $2. In a post on X, the analyst pointed out that, while XRP has recently recorded a higher low after bouncing from its range lows on smaller time frames, it has not yet achieved a higher high, which causes concern for bullish momentum.

The analyst emphasized that until XRP breaks above the descending triangle formation and surpasses the $2.30 threshold, further volatility is likely, raising questions about a potential revisit of previous lows.

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Source: Chart from CryptoInsight on X

Despite the bearish outlook in the short term, CryptoInsight maintains a bullish perspective on XRP's long-term potential. He reassured that the higher-time-frame structural integrity of XRP remains strong. The price is effectively holding at the yearly range lows, which also marks a historical resistance level from the past seven years. Consequently, he believes it's only a matter of time before XRP reaches a new all-time high (ATH), driven by liquidity factors.

The analyst also expressed uncertainty about whether XRP would need to dip lower first to gain the necessary momentum for a recovery. Fellow crypto analyst CasiTrades noted that XRP may experience one final low before a recovery, highlighting potential bottom levels at $1.80 and $1.64.

XRP Set to Retest $2.04: Two Scenarios Ahead

In a recent update, CasiTrades predicted that XRP is likely to retest the macro .5 Fibonacci level at $2.04, characterizing this as a critical support level crucial during price corrections. She outlined two potential scenarios that could unfold if XRP reaches this value.

The first scenario is optimistic; if the $2.04 support holds, XRP could climb above the $2.41 resistance and aim for $2.65, potentially marking the beginning of a new upward trend. Should this play out, it would strongly indicate that the macro low has been established, with XRP possibly targeting new highs in the range of $7 to $10.

Conversely, the second scenario leans toward a bearish outlook. If XRP fails to maintain support at $2.04, CasiTrades suggests that the price might drop towards $1.64. This move would complete the full macro .618 retracement before XRP potentially enters a macro Wave 3 in its cycle.

As it stands, XRP is trading around $2.08, down more than 4% in the last 24 hours, based on data from CoinMarketCap.

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XRP trading at $2.06 on the 1D chart | Source: XRPUSDT on Tradingview.com