XRP Price Tanks Amid Major Sell-Off — Will It Rebound Above $2 or Crash Further?
With XRP dropping 12.8% this week and massive whale sell-offs, can the token regain its strength, or is further decline inevitable? | That's TradingNEWS
XRP Price Struggles Amid Selling Pressure — Will it Recover or Continue to Fall?
The XRP-USD token has been battling significant downward momentum, and the price has been hovering around $2.08, marking a 12.8% drop this week. After failing to break through the key resistance level at $2.220, XRP witnessed a sharp decline, falling below multiple important support zones. This pattern of lower highs and lower lows has traders questioning whether XRP can hold its ground above the crucial $2.00 level, or if it will continue its bearish path toward $1.07 as predicted by some experts.
The Impact of Whale Activity on XRP's Price
One of the major driving forces behind the recent downfall of XRP is the massive offloading of tokens by large holders, or whales. Over the last 48 hours, whales have sold more than 1 billion XRP tokens, worth approximately $2.3 billion. This sudden increase in supply has put significant selling pressure on XRP, making it harder for the token to maintain its value. Historically, large sell-offs by whales have led to heightened market instability, contributing to price crashes and panic selling by smaller retail investors. If this trend continues, XRP may struggle to maintain any semblance of stability.
Key Resistance and Support Levels
As XRP faces continued selling pressure, its price remains well below key resistance levels. The 100-hour simple moving average (SMA) at $2.150 and the 50% Fibonacci retracement level at $2.148 now pose significant obstacles for XRP bulls. Any attempt to push higher would need to overcome these resistance points for a potential recovery. On the other hand, if XRP fails to reclaim $2.20 and drops below the next major support level at $2.080, further declines could be in store. According to some analysts, if XRP breaks below $2.00, it could experience a deeper slide, potentially reaching the $1.07 mark as indicated by Peter Brandt, who has pointed to a head-and-shoulders pattern signaling a potential reversal of trend from bullish to bearish.
Bearish Predictions from Experts
Veteran trader Peter Brandt has been vocal about his bearish outlook for XRP. Based on his analysis, Brandt predicts that if XRP cannot break through resistance levels like $2.20, it could soon fall to $1.07, a 50% drop from current levels. Brandt’s bearish stance is largely influenced by technical indicators such as the head-and-shoulders pattern, which traditionally signals a significant price decline. While Brandt’s pessimism isn’t shared by all in the crypto space, his outlook underscores the importance of $2.20 as a critical resistance level for any potential recovery.
Potential for a Bullish Reversal
On the flip side, some analysts remain optimistic about XRP’s future. Vincent Van Code, a prominent software engineer and crypto analyst, has described XRP’s current price as a “no-brainer” for investors, believing that it’s undervalued at these levels. Van Code sees the risk-to-reward ratio as highly favorable, suggesting that the token could be primed for a rebound if market conditions shift. If XRP can break above $2.20 and hold steady, there is a possibility of a rally toward $2.50 and higher.
Additionally, Ali Martinez, another market expert, pointed out that while whales have offloaded a substantial amount of XRP, bulls still have a chance to reclaim momentum if they can push the token above the $2.20 resistance. He noted that this breakout could result in a surge towards $2.250 and potentially beyond, although this depends heavily on broader market sentiment and continued demand for the token.
Ripple’s Legal Battle and Its Potential Impact on XRP
One of the key factors influencing XRP’s price is the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). Ripple’s recent victory over the SEC, combined with the dismissal of the SEC’s appeal, has provided some relief for XRP holders. Legal clarity could pave the way for XRP to gain traction, especially if regulatory hurdles are cleared and institutional investors are able to enter the market without concerns over legal ramifications. The potential launch of an XRP ETF could further bolster the token's standing, as it would provide a regulated pathway for institutional investors to gain exposure to XRP. However, the uncertainty surrounding XRP’s regulatory status means that XRP may still face significant challenges before it can return to its previous highs.
Market Sentiment and On-Chain Activity
The broader sentiment in the crypto market continues to be bearish, with XRP struggling to maintain momentum. Over the past month, XRP has posted a 4.9% decrease in its 30-day performance, further reflecting the ongoing weakness. On-chain activity has also slowed, with whale transactions significantly decreasing and exchange accumulation remaining subdued. This suggests a lack of demand for XRP, which could make it more vulnerable to further selling pressure if the broader market sentiment remains negative.
XRP's Long-Term Outlook: Is $10 Possible?
Looking ahead, XRP’s long-term prospects remain uncertain. While some analysts are predicting significant growth in the coming years, including projections of $7 to $10 by 2025, others warn that XRP could continue its bearish trend if market conditions don’t improve. The SEC lawsuit has been a major factor in XRP’s recent price fluctuations, but Ripple’s success in expanding its RippleNet and growing partnerships with major financial institutions could help the token establish a stronger position in the market.
Ripple’s continued efforts to promote XRP as a solution for cross-border payments, combined with the possibility of XRP ETFs, could potentially drive demand and increase adoption in the long term. However, much of XRP’s future success will hinge on market sentiment, whale activity, and the resolution of regulatory uncertainties.
Conclusion: Bearish or Bullish?
Currently, XRP is facing significant downward pressure, with whale sell-offs and resistance at key price levels making it difficult for the token to regain bullish momentum. However, the market remains divided, with some analysts projecting a 50% drop in the short term, while others maintain that XRP has strong growth potential, especially if it can overcome resistance levels like $2.20. Investors should stay vigilant as the token navigates both technical and fundamental challenges, with a potential bullish reversal dependent on breaking key resistance levels and securing regulatory clarity.
