XRP has fallen 7% in one week after reaching a peak of $3.40. With the downward momentum and Bitcoin at risk of a correction, could XRP plunge down to $2?
Overview of XRP Price: What is Happening with XRP?
XRP has experienced a significant drop, losing 7% since last week. This correction follows a strong rally that pushed the price from $2.80 to $3.40, benefiting from the upward trend of altcoins along with Ethereum's surge.
However, optimism has quickly faded. As of today, XRP has slipped below the psychological threshold of $3, raising concerns about a deeper correction that could wipe out gains made since early August.
XRP Price Analysis: Support Under Pressure
The attached chart shows the price of XRP trading just below $3, after breaking the descending triangle pattern. Key observations:
Downtrend resistance: The orange trend line highlights continuously lower highs, confirming bearish pressure.
Moving averages: Both the 50-day SMA ($3.08) and the 200-day SMA ($3.10) are above the current price, signaling a bearish shift.
Support level: The immediate support level is near $2.80 (green line), which previously acted as a recovery foundation. If broken, the next psychological target will be $2.50.
RSI (Relative Strength Index): At 32.56, XRP is hovering near the oversold zone, indicating short-term recovery potential but is overall still weak.
This incident indicates waning upward momentum, and unless buyers quickly reclaim the $3 level, sellers may continue to push the price lower.
Macroeconomic Risk: The Role of Bitcoin and Ethereum
The cryptocurrency market in general remains at risk as Bitcoin hovers around critical price levels. If Bitcoin drops to $110,000, historical models suggest altcoins like XRP will suffer greater losses.
Additionally, the surge of $Ethereum is the main driver of altcoin strength. If the momentum of $ETH weakens, capital outflows could accelerate XRP's decline. In this case, XRP risks dropping below $2.80 and might test the $2.00 area, marking a nearly 30% decrease from the current level.
XRP Price Prediction: Will XRP Recover?
Bullish scenario: A quick recovery above $3.10 and strong stability of Bitcoin could trigger a rebound to $3.40.
Bearish scenario: Failing to hold above $2.80 combined with Bitcoin's weakness could pull XRP down to $2.50 and possibly $2.00.
In the short term, XRP traders should closely monitor the $3.00-$2.80 range. A strong break could likely confirm a downtrend.
