Ripple’s XRP has taken a downturn, slipping 4% in early U.S. trading hours, signaling a cooling risk appetite among investors. Despite this setback, market analysts remain divided on its future trajectory. While some foresee a potential recovery, renowned analyst CasiTrades has sparked speculation by hinting at a possible drop to $1.7.
XRP Price Faces Selling Pressure
At the time of writing, XRP hovers near the $2.2 mark, accompanied by a sharp 29% decline in daily trading volume to $6.86 billion. The Relative Strength Index (RSI) has neared oversold territory, reflecting intense selling pressure.
Adding to the bearish sentiment, on-chain data reveals that Ripple whales have offloaded over 370 million XRP, contributing to the downturn. CoinGlass data further indicates a 2% decline in XRP’s Futures Open Interest, reinforcing concerns over weakening investor confidence.
Will XRP Hold Above $2 or Sink Further?
CasiTrades recently cautioned that XRP’s ongoing correction may be nearing its final stage, with a potential drop to $1.97. However, another analyst suggested a more pessimistic outlook, predicting a plunge to $1.75 due to a Head and Shoulders pattern. While CasiTrades acknowledged the possibility, their subwave analysis does not support such a deep correction. Instead, they highlighted a bullish divergence on higher timeframes, hinting that XRP might soon reverse its downward trajectory.
that is possible, but our subwaves are not projecting that low.
— CasiTrades 🔥 (@CasiTrades) February 26, 2025
This prediction coincides with Bitcoin testing its 0.382 Fibonacci support level. If BTC stabilizes and initiates a relief rally, XRP could follow suit. However, the risk of falling to $1.75 remains if bearish momentum persists. Some experts have even pointed to a possible dip toward $1.6 in a worst-case scenario.
Key Levels to Watch
Prominent analyst EGRAG CRYPTO emphasized that XRP must hold above the $2.35 support level to re-enter a bullish phase. Should the asset maintain this position, a rally toward $3 could be in play. Conversely, a close below $2.2 could amplify bearish sentiment, increasing the likelihood of a drop toward $1.7.
Meanwhile, Dark Defender pointed out that XRP’s RSI nearing oversold territory may trigger a bullish wave, initially targeting $3. If achieved, further price surges toward $5 and $8 could be possible. Key resistance levels to monitor include $2.44, $2.99, and $5.85, while crucial support lies at $1.88 and $1.91.
Also Read: XRP Defies Crypto Crash: Outperforms Bitcoin & Altcoins Amid Market Turmoil
XRP’s next moves remain uncertain, hinging on key support and resistance levels. While bearish indicators suggest further downside, oversold conditions and market trends could pave the way for a rebound. Investors should closely monitor price action as XRP approaches a crucial inflection point.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
