Analysts are now warning that the asset could be on the verge of another breakdown as it lost a crucial support level.
Although XRP has recovered some ground since the plunge this morning to $2.72 (a three-week low), the cryptocurrency is still down by over 10% weekly. The aforementioned key support level that has been breached to the downside is $3.
Numerous analysts believe this line would play a pivotal role in determining XRP’s near-term future. Dropping and closing below it, as Ripple’s cross-border token has done over the past 24 hours, could spell further trouble. In yesterday’s warning article, CryptoPotato cited data from Ali Martinez, who went even further by providing more precise selling and re-entry points for XRP.
“Consider shorting XRP near $2.98 with a target of $2.48 and a stop at $3.18. Alternatively, setting up buy orders between $2.40 and $2.20 could position you well for the next rebound.”
Martinez doubled down on his prediction earlier today that a price drop to $2.40 is in XRP’s future, basing his analysis on the TD Sequential metric.
Michaël van de Poppe, another analyst with more than 800,000 followers on X, also weighed in on the matter, highlighting the importance of losing the $3 level. His conclusion aligns with Martinez’s target of $2.40 and a subsequent bounce-off.
Cryptowzrd also noted that XRP has closed bearish, even against BTC. However, the market observer said Ripple’s token will eventually stage a “quick recovery rally” once Bitcoin’s dominance starts to decline again. Recall that the metric dropped from over 64% (on CoinGecko) to under 59% in July during the altcoins’ run. However, it has jumped past 60% once again as the alts got hammered in the past few days.
It goes without saying, but this article is not financial advice. Also, it’s not meant for full-time XRP believers (HODLers) who want to ride the wave for years. Instead, traders and those wanting some adrenaline can use it as a reference, as it’s based on the opinions of some of the most popular crypto analysts.
