On December 3, XRP price hit $2.9, its highest value since February 2018. It happened after having risen by 105% within eight days. Nonetheless, the upward movement stalled at the resistance level and was followed by a sharp bearish trend. Since then, the crypto has been in a consolidation phase, trading at $2-$2.5 with occasional dips below $2.
Even with an upswing, XRP has not been able to challenge previous peak prices. This shows the earlier bullish sentiment.
Analyst Predicts XRP Could Drop to $1.50 by Next Week
According to The Block Bull, a market analyst, the future of XRP does not look promising. He feels it may go into a bearish trend in the coming days. His analysis indicates that the price could fall at least to $1.50 by the next week, crossing critical support areas.
At press time, the XRP price is still down 1.4%. It is putting an end to the short rally that started on the 10th of December. However, the following day the asset only presented a slight stability and the trading continued to be rather weak.
The analyst also points out that the $1.50 level may be tested soon, which XRP breached on November 29. If this happens, it would be a 36% decline from its current trading price of $2.4.
Year-End Crash to $0.50 Possible if Key Support Levels Are Breached
In the long term, analysts suggest that there is potential for a much more significant fall in the price of XRP. In the case where XRP is unable to trade above the $1.50 level a downward slide to $0.50 by the end of this year can be witnessed.
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The historical price trend of XRP indicates that the currency hovered around the $0.50 mark in the years 2022 and 2023 before crossing this mark in November 2024. Getting back to this price level would be a 79% retracement of the recent high of $2.9. This makes it even more crucial for XRP to hold the current support level in order to avoid such a sharp decline.
XRP Price Critical Support Level at $2.2
The $2.2 is seen as the significant level for the XRP price in this case. According to The Block Bull, breach of this level could lead to a free fall to $1.50. As of press time, XRP was trading at $2.34 just above the critical level.
This price behavior is reminiscent of the past, including the sharp dip that was realized after XRP had risen by 284% in March 2017. Even though the price bounced back and hit a record high of $3.3 later in the same year, this early decline should be of concern to investors now.
According to the analyst’s projection, there is likely to be high volatility in the coming weeks. It has been like this in the previous years too.
Nonetheless, a bearish outlook is the prevalent sentiment at the moment, but there are a number of supporters of the XRP token. This can be attributed to several factors such as the expected release of Ripple’s RLUSD stablecoin and expected changes in the legal framework under the new administration of Donald Trump. These developments are the catalysts for upward movement in the price of XRP.
However, there is still room for XRP price to rise according to analysts, regardless of the current bearish trend. While market skepticism persists, EGRAG’s analysis highlights defined Fibonacci retracement levels that may lead to $6 by December 2024 and $27 by January 2025.
