The value of XRP sharply declined to $1.76 before rebounding above $2. Analysts discuss the reasons behind this drop and the potential for future growth.
Reasons for the Sharp XRP Decline
XRP experienced a significant drop, falling below $3 for the first time since mid-January, touching $1.76. This was part of a broader crypto market collapse with liquidations exceeding $2.2 billion, marking the worst downturn since the collapse of FTX. The primary cause was fears of a trade war following the announcement of high U.S. tariffs on Mexico, Canada, and China.
Analytical Forecasts for XRP
Market analyst EGRAG predicted a possible 40% drop, citing a bearish 'shooting star' candlestick pattern on the monthly chart. His prediction came true, but now he believes XRP could target $3 again. EGRAG's analysis suggests a bounce off a key support trendline, reinforcing a potential bullish reversal.
Key Levels for XRP Recovery
Analyst Anbessa believes XRP is in consolidation mode. Mid-range support is holding, signaling potential stability. A break above $2.45 could trigger a move towards $3. Currently, XRP trades at $2.34 with decreased volatility. The return of buying activity could give bulls a chance to push the price toward $3.
Despite the sharp drop, XRP shows resilience as it consolidates above $2.30. Analysts believe a move toward $3 is possible with the return of buying pressure.