XRP Takes a Tumble: Analysts Warn of a Possible 50% Drop Ahead
XRP has been under heavy selling pressure lately, and investors are starting to feel the heat. On Monday, the cryptocurrency dropped nearly 4.7%, trading around $2.40 — making it one of the weakest major altcoins in the market. This slump wasn’t just about XRP alone, though. It came amid a broader decline in the crypto space, as Bitcoin, Ethereum, and several other digital assets also took hits.
So, what’s really driving XRP down? Well, the broader crypto market has been losing momentum over the past few days. Bitcoin slipped below the $108,000 mark, while Ethereum dropped roughly 4%, and other major coins like BNB and Solana were down even more. The entire market is reacting to renewed uncertainty from the U.S. Federal Reserve. Last week, Fed Chair Jerome Powell hinted that a December interest rate cut isn’t guaranteed, which dampened investor expectations for easier monetary policy. That signal alone pushed markets lower, with crypto taking the brunt of it.
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Another major factor here is the strengthening U.S. dollar. The dollar index has been rising for four straight sessions, now at its highest level in three months. Since cryptocurrencies are priced in dollars, a stronger greenback naturally puts pressure on digital assets like XRP. Simply put, when the dollar gets stronger, crypto prices tend to weaken because it becomes more expensive for international investors to buy in.
From a technical standpoint, things don’t look too promising either. XRP recently broke down from what’s known as a “falling wedge” formation — a pattern that often hints at a bullish reversal. But this time, the move went in the opposite direction, signaling bearish momentum. Analysts now believe that XRP could fall another 50%, potentially dropping toward the $1.25 level. This prediction is supported by Fibonacci extension analysis, which maps out likely support and resistance zones based on prior price movements.
Currently, XRP is trading below both its 50-day and 200-day exponential moving averages — typically a bearish setup suggesting that sellers are in control. The key resistance area sits between $2.59 and $2.70, and unless the price breaks above that range, downward pressure is expected to continue.
If the current $2.20–$2.30 support zone gives way, the next likely stops could be around $2.00–$1.90, followed by $1.61, and finally the critical $1.25 mark. Analysts say that this zone lines up with a previous low from October, when heavy liquidations drove XRP briefly to that level.
For now, market sentiment around XRP remains cautious. While some long-term holders are offloading their positions, traders are watching closely for any signs of a reversal. Until the overall crypto market stabilizes and the dollar weakens, XRP’s near-term outlook appears to lean bearish — and the road ahead could still be rocky.
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