In light of the recent price drop, analysts are concerned about the potential for further declines in XRP. Key factors influencing this situation are examined.
Analyst Warnings of Further Drops
Crypto analyst Ali Martinez has expressed concerns that XRP may face a deeper drop. He highlighted that the Tom DeMark (TD) Sequential indicator recently flashed a sell signal on XRP's three-day chart, which occurred right after reaching a recent peak. Such signals are often seen as indicators of a potential correction.
Weak Support Below Current Price
The $3 price level has long served as a support zone for XRP, but new data indicates that this support is weakening. The next significant support level is around $2.80, but it is expected to fail if selling pressure increases. Stronger support lies below $2.48, and a drop to that level could signify a much steeper correction.
Whale Activity and Its Impact on the Market
Recent whale activity is also raising alarms. It has been reported that large holders have dumped over 720 million XRP tokens, which adds pressure to the market. This can undermine retail investor confidence and lead to further selling.
The current situation with XRP highlights multiple factors contributing to potential price declines. It is essential to monitor market changes and analyst warnings closely.
