What is the Potential Bottom for XRP Following a Dip Below $2?
XRP has plunged towards new lows with Bitcoin and ETH sell-offs intensifying. Is $0.88 the next target for this altcoin?
What is the Potential Bottom for XRP Following a Dip Below $2?
XRP has recently suffered a significant decline, sliding towards fresh lows as Bitcoin and Ethereum see an increase in liquidation. Market analysts are now speculating whether the altcoin’s decline might see it hit $0.88.
Key Points
- XRP’s megaphone pattern on the weekly chart targets $0.88.
(XRP’s megaphone formation indicates a possible price drop to $0.88.) - Rising selling pressure means many investors are liquidating their XRP holdings at a loss.
(Numerous traders are exiting their XRP positions, facing losses.)
As the price settles around $1.93 after a 3% dip within the last 24 hours, many are questioning the potential for recovery after failing to maintain a value above $2.
XRP/USD one-hour chart. Source: Cointelegraph/TradingView
Classic XRP Pattern Predicts a Drop to $0.88
The pattern exhibited by the XRP/USD pairing, identified as a megaphone configuration, signals potential for further depreciation for this altcoin. This formation typically unfolds as prices form alternating higher highs and lower lows, suggesting that a breakdown beneath its lower boundary could incite a swift drop.
- Downward Trend Confirmation:
For the pattern to be validated, a price increase beyond the lower trend line near $1.80 is required. - Target Forecast:
The projection for this decline rests at $0.88, implying a significant 54% drop from current prices.
XRP/USD daily chart. Source: Cointelegraph/TradingView
Key resistance levels to monitor prior to this price point include the 100-week simple moving average (SMA) at $1.60 and the 200-week SMA at $1.05.
Currently, the weekly RSI has dipped to 39 from previously alarming levels of 91 observed in December 2024, revealing a persistent downward momentum in the market.
As more than 41.5% of XRP holders face a loss, intensifying pressure from sales is expected as investors calculate their losses. Similar market behaviors in 2018 and 2021 resulted in abrupt market corrections, raising concerns about potential parallels in the upcoming weeks.
XRP Realized Losses Reach Seven-Month Highs
XRP reached an intra-day low of $1.81 this month, which mirrors values last seen in April, as per data from Cointelegraph Markets Pro and TradingView. As many sell off at a loss, this situation echoes previous major market downturns.
Realized losses for XRP have risen to figures not witnessed since April, according to data from blockchain analytics firm Glassnode.
“The 30D-EMA of daily realized losses has surged to about $75M per day,” reported Glassnode through their X account last Friday.
XRP realized loss. Source: Glassnode
Glassnode’s statement was issued moments before XRP plunged beneath the $2 mark, equating to a 50% retracement from its multi-year high of $3.66 seen in mid-July.
Persistent low on-chain demand and ongoing profit-extraction by major holders may amplify the risks associated with XRP’s market exit.
Disclaimer: The information in this article should not be interpreted as investment advice or recommendations. All trading and investment activities entail risks; readers should perform their own due diligence.
