Ripple's native cryptocurrency XRP has faced a significant price correction, falling over 20% from its recent all-time high. Analysts are warning that the asset may face further declines.
Severe Price Drop of XRP
After plummeting to $2.72, a three-week low, XRP continues to lose value. The crucial support level of $3 has been breached, leading to a weekly decline of over 10%.
Expert Analysis
Many experts indicate that the $3 support level is critical for XRP's future movements. Losing this level could worsen market conditions. Analyst Ali Martinez suggests traders consider shorting XRP near $2.98, targeting $2.48, with a stop-loss at $3.18. He also mentions possible buy orders between $2.40 and $2.20.
> “XRP is likely to drop to $2.40,” stated Martinez, referencing the TD Sequential signals.
Analyst Michaël van de Poppe also noted that losing the $3 level would lead to a deeper correction, with interests potentially returning around $2.40 - $2.60.
Market Trends
Currently, XRP demonstrates bearish signals even against Bitcoin. However, there are opinions suggesting Ripple could recover after a temporary decline once Bitcoin's dominance starts to wane. Currently, this dominance hovers above 60%, negatively affecting altcoins, including XRP.
The current market situation for XRP requires close analysis. The breach of the $3 support level complicates predictions, and investor actions will depend on future developments. Monitoring key levels will be crucial for determining potential trading strategies.
