- XRP sits on a crucial support level near $2, losing which analysts warn would lead to $1.20.
- Despite a brief recovery led by Bitcoin, the token’s broader trend remains weak.
- Whale accumulation despite the uncertainty shows disconnect from XRP’s recent price performance.
XRP has been in what appears to be sideways movements lately, and that puts it in a thin-ice situation. The token risks a significant crash to $1.20 if it loses a critical support that has played a key role in its price movement in this cycle.
Crypto analyst Ali says XRP currently enjoys a strong support at $2, a level that has often defined its next move, whether upward or downward. According to the analyst, the next major support should the token lose this level is $1.20. That will be a massive 40% decline from the $2 price if the analysis plays out.
A drop to $1.20 Too Expensive for XRP
The current market cycle has been a trying one for most crypto assets, one of which is XRP. After reaching a high of $3.5 in July, the token has almost been in a consistent downtrend causing the price to fall significantly. All the while, $2 has been a critical support that was breached a few times.
At every point when this level was broken, it flipped into a strong resistance, making it extremely difficult to reclaim. Losing it now and further dropping to $1.20 therefore may be a price too high for XRP to pay, especially as the crypto market is showing signs of recovery.
At the time of this report, the token is trading at $2.17 which looks safe but could be compromised easily. Analysts believe the current market recovery led by Bitcoin does not have structural support, and so is potentially a temporary one that may be reversed into a correction at any time.
Meanwhile, another analyst has also commented on the price of xrp, saying it will only confirm a bullish momentum if it surges above $2.27. Following the recovery, the token has gained 6.69% in 24 hours according to Coinmarketcap, with potential to inch higher but it could do some sideways movements for a while.
XRP Struggles Despite Whale Buying
XRP’s price action hasn’t been encouraging, but this is entirely contrary to the market sentiment. Data reveals that whales have been buying up the token despite the price uncertainties especially as its ETFs launched recently.
This trend has been seen in Solana as well, which despite a 7-day inflow streak following its ETF launch, the price continued to struggle. Investors eagerly look forward to the time when this massive inflows translate into price action.
- XRP Flashes 2017 Parabolic Pattern – Is a Big Rally Imminent?
- Crypto Analyst Claims XRP Could Reach $5 “Easily” – Market Data Tells a Different Story
- XRP Springs Back to Life off Major Support
What do you think?
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