TL;DR
- XRP is hovering near critical support at $2. Analysts suggest a rebound could push it toward $2.80, but failure may open the door to short setups and deeper pullbacks.
- In addition, massive whale sell-offs as of late raise the risk about a further correction.
Can Bulls Regain Control?
Ripple’s XRP experienced a significant uptick on March 19, following CEO Brad Garlinghouse’s announcement regarding the conclusion of their legal battle with the U.S. Securities and Exchange Commission (SEC). This news propelled the price to around $2.60. However, the momentum was short-lived as the price subsequently plunged, reflecting a ‘sell-the-news’ reaction.
In the recent days, the pullback has become more pronounced as XRP approached the critical $2 psychological support level, currently trading at approximately $2.09 according to CoinMarketCap, representing a 20% decline from its recent peak.
Despite the downturn, XRP remains a focal point for analysts. One notable prediction from a user on X, CRYPTOWZRD, indicates that the price’s proximity to the $2 support level presents an opportunity for a potential rebound towards the resistance level at $2.80.
“Moving below $2.10 and holding there for a while can lead to a short. However, moving towards $2.33 and then a healthy reversal will offer a better short opportunity. Holding above $2.33 for a while may lead to a long. We now need to wait for the next healthy, mature trade setup to engage with the trade,” they noted.
Another analyst, The Great Matsby, suggested that XRP may have found its bottom earlier this February when it briefly dipped below $1.80.
Peter Brandt’s Opinion
Expert trader Peter Brandt also weighed in on the matter, recently suggesting that XRP’s price movement is forming a classic head-and-shoulders (H&S) pattern. Brandt hinted at a bullish outlook if the price surpasses $3, while cautioning that a failure to maintain above $1.90 could see the price plummet to the $1.07 level.
Adding to the market’s uncertainty, whales have reportedly dumped 1.12 billion XRP within a mere 48 hours, potentially paving the way for a deeper price correction. Such significant sell-offs often instigate panic within the market, prompting smaller investors to exit.
This large-scale selling introduces additional XRP into circulation, which, combined with static demand, could further exacerbate price declines. The dumped tokens represent an approximate value of $2.5 billion at current rates.
As the market navigates these tumultuous waters, investors are left on edge, watching for signs of recovery or further decline.
