XRP Faces Steep Fall to $0.8 – Here’s Why

All crypto assets are facing a downtrend challenge, but XRP may be at risk of a major fall. The asset faces the risk of crashing to $0.80 in the near future due to a number of factors that have become apparent on its network.

Top crypto analystAli in a long X post on December 29th curated several factors that have contributed to the weakness of the token over time which now have the possibility of crashing the price to the $0.80 level, a level not seen in a long time. This would mark a significant drop in XRP’s price this year since the bear market started.

The Odds Turn Against XRP

XRP began the year strong and maintained the strength relatively well, reaching a yearly high of $3.55 in July. Like the other crypto assets including Bitcoin, the token has lost most of its gains due to the crash that has plagued the market till date. Apart from this general fall, XRP’s fundamentals haven’t been very impressive lately.

First, the number of active addresses have fallen to about 38,000. Typically, this fall in active addresses indicates waning interest in the asset, resulting in fewer holders carrying out any transactions. With such a loss of interest, a weak price action is the likely natural outcome.

Secondly, whales, who are the major holders of the token, have recently turned from holders to sellers. This could be an attempt at reducing losses as the price momentum continues to weaken and uncertainty looms. Over 40 million XRP tokens have been sold in the last few days, which is a significant amount that is likely to affect the price, with the potential of crashing it if the selling pressure persists.

At the time of this report, XRP is trading at $1.87, which is safely above the major $1.77 support. However if the price fails to hold this level and it breaks, the next major support zone is $0.80, which was last seen in November 2024.

XRP Must Hold Current Level to Rise

The current XRP price sits around a critical support level that an analyst this month said was critical in determining the token’s future. The token has retested this level a number of times and is tapping it again, which means the strength is weakening. 

If this level is lost, the lower levels get weaker, making it more likely for the token to test the $0.8 price that is currently in focus unless a sudden change in momentum kicks in. 

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