The XRP market is currently exhibiting signs of bullish consolidation, but a notable analyst has issued a cautionary forecast suggesting that a significant price correction may be on the horizon.
Despite XRP trading in a narrow range between $2.16 and $2.25 over the last 24 hours, top analyst BLOCK BULL warns that an emerging pattern on the daily chart could lead to a sharp decline in value. According to the analyst, XRP may be heading for a 30% drop, potentially bottoming out at $1.55.
Bearish Setup Emerges
BLOCK BULL shared insights via X (formerly Twitter), highlighting a rejection at the edge of a bull flag formation on XRP’s chart. If the price fails to hold above $2.2562, the next critical support level sits at $1.55. The chart analysis suggests that market makers could be strategically shaking out retail investors, creating opportunities for larger players to accumulate XRP at discounted levels.
This prediction comes as the broader altcoin market faces ongoing pressure from macroeconomic uncertainty and liquidity imbalances. According to the post, XRP has already contributed to a 1,000% liquidation imbalance, a sign of volatility and potential market manipulation.
XRP’s Current Momentum
At the time of writing, XRP is trading at $2.239, marking a 3.58% increase in the past 24 hours. Despite recent volatility, the token has posted a 4.52% gain over the past month and maintains a strong historical performance in May, with an average 25% monthly growth over the last three years, according to data from Cryptorank.
Although May 1 saw a slight 2% dip, XRP has shown notable resilience. These gains could cast doubt on the bearish forecast, especially if bullish sentiment continues to build.
Ripple Labs in the Spotlight
Ripple Labs, the company behind XRP, has been making headlines with its aggressive growth strategy. The firm reportedly made a $5 billion acquisition offer for Circle, which was ultimately rejected. This bold move has sparked speculation around Ripple's ambitions in the stablecoin and payments space.
With increasing regulatory clarity and growing interest in Ripple’s RLUSD stablecoin, the ecosystem may be poised for a long-term breakout. These developments could potentially counterbalance any short-term market downturns.
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Final Thoughts
While BLOCK BULL's analysis raises valid concerns about a possible XRP price correction, market sentiment remains mixed. The broader crypto environment, combined with Ripple Labs' expanding influence, may offer bullish momentum that challenges bearish projections.
Stay tuned and monitor key levels closely as XRP navigates this pivotal moment.
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