Optimism had been building earlier this month, with some traders eyeing a potential breakout run toward $5 as some traders saw it as the beginning of a larger breakout, as reported by Blockchainreporter. However, growing caution in the market and signs of weakening momentum have dampened those hopes for now, as per Crypto News.
Even major XRP holders offloaded around 460 million tokens over the past week, which led to a 13% price decline, according to the report. The sell-off has left XRP down 11.6% over the past 7 days and 18.52% over the past month, raising red flags among analysts, as reported by Crypto News.
Now, traders expect $2.85 support level, which could act as a critical line, and if XRP fails to hold this mark, traders are pointing to the next likely support zones at $2.74 and $2.63, according to the report.
So that means that traders would need to show strong confidence in buying the dip in order for XRP to stabilize, otherwise, any upcoming correction has the potential for further downside,as reported by Crypto News.
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Technical indicators are flashing warning signs. The Relative Strength Index (RSI) has fallen to 35, approaching oversold territory, as per the Crypto News report. Combined with bearish candlestick patterns, including a textbook “three black crows” formation, analysts are leaning toward a bearish short-term outlook, according to the report.While the overall forecast remains cautious/negative for the time being, the situation would be reviewed if XRP could make it back to the resistance band identified at $2.95 – $3.15, as reported by Crypto News.ALSO READ: Is Target in trouble? TGT stock falls after CEO Brian Cornell steps down amid sales struggles, COO Michael Fiddelke takes charge
Despite the recent dip, nearly 93% of XRP’s circulating supply is still in profit, which could tempt more holders to sell before any deeper correction occurs, according to the report. Analysts warn that if this kind of selling pressure intensifies, XRP could slide even further, particularly if Powell delivers a hawkish tone at Friday’s speech, as per Crypto News. But if Powell signals interest rate cuts, liquidity and risk appetite could boost crypto prices, according to the report.
Meanwhile, bounce could trigger upside towards the $3.02 range, but the momentum shown on chart indicators shows that sellers are currently holding the reigns, as reported by Crypto News.
Crypto News reported that the current Ripple crypto price prediction is somewhat bearish, with current projections indicating a possible dip to $2.74.
Why is XRP dropping below $3 now?
Major holders sold millions of tokens recently, and weakening market momentum ahead of the Fed’s speech is causing caution.
How might Jerome Powell’s speech affect XRP?
If Powell signals rate cuts, crypto prices including XRP could rise, a hawkish tone might cause more selling, as per the Crypto News report.
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