XRP investors are currently facing a crucial moment as recent market trends cast doubt on the future of the cryptocurrency in the short term. Following a strong bullish period, XRP has encountered some challenges, with technical indicators hinting at the possibility of further declines. The question now is: what lies ahead for XRP’s price, and how low could it potentially go?
A specialist focusing on Moving Average Convergence Divergence (MACD) noted that XRP recently underwent a “death cross” – a bearish signal indicating that the short-term moving average has dropped below the long-term moving average. This often signifies the beginning of a downtrend, and XRP’s price has indeed fallen by 37% since the signal, with the current decline hovering around 31%.
This isn’t the first time XRP has encountered such a critical moment. In February 2018, following a similar death cross, XRP’s price plummeted by a whopping 90%, plummeting from over $3 to below $0.30.
Source: Stephiscrypto
In May 2021, the cryptocurrency experienced a 53% drop following another bearish crossover, and by November of the same year, it saw an additional 76% decline. These trends indicate that death crosses are not merely temporary signals; they often mark the start of prolonged bearish periods.
So, where does this leave XRP now?
If history repeats itself, XRP could face another significant drop. A 53% decrease from its current price would bring it down to approximately $1.40. If the downturn mirrors the severity of the 2021 drop, we could be looking at a price around $0.71. In a worst-case scenario, if XRP follows the trajectory of the 2018 crash, the price could dip below $0.30.
Nevertheless, it’s not all negative. Maintaining crucial support levels like $2 could prevent a more substantial decline for XRP. However, if this level breaks, the next support could be much lower, potentially leading to the worst-case scenario.
Many experts suggest that XRP is approaching a bottom, supported by significant whale accumulation and indications that the market may have overreacted to recent price movements. The question that lingers is: will XRP recover as it has in the past, or is this the beginning of a more profound correction? The answer lies in the market’s response in the upcoming weeks.
