Is XRP on the Brink of a 74% Crash? Analyst Warns of Key Levels to Watch
Cryptocurrency XRP, the backbone of the Ripple blockchain, is facing potential bearish momentum, with cryptocurrency analyst EGRAG Crypto warning that the price could drop by 74%. The analysis comes against the backdrop of XRP funding rates turning negative as the broader market declines, causing XRP Price dropped by 5% Within a week.
XRP faces a 4% plunge
In a recent tweet, EGRAG Crypto shared insights into XRP price action, highlighting key patterns observed in its historical charts.
According to the analysis, XRP faces a sharp drop of 64% to nearly 90% every time it touches the C cross, and this time he predicts an average drop of 74%. If this trend repeats, XRP could fall to $1, which would be a serious test for the cryptocurrency.
Historical data shows that this level has posed a significant challenge to XRP over the past decade, often resulting in significant price declines.
For example, XRP experienced significant corrections in December 2015, May 2017, September 2018, and April 2021, with average losses of 74%.
Avoiding a Crash: The $4 Barrier
To avoid this bearish scenario, EGRAG points to the importance of a strong confirmation of XRP’s close above $4 on the weekly chart. He noted that this must happen before March 10, 2025, otherwise it could trigger another severe recession.
The urgency is heightened by the upcoming lunar eclipse on March 14, which EGRAG notes has historically often coincided with market volatility and price declines.
Funding rates increase pressure
The situation becomes more complicated XRP funding ratehas become negative. This suggests that more and more traders are shorting the price of XRP, thereby adding pressure to their current positions.
Negative funding rates tend to reflect bearish sentiment in the market, making it more challenging for XRP to remain stable.
XRP long-term target: $15
Despite these short-term concerns, EGRAG remains bullish on XRP’s long-term prospects. He believes that if XRP can break through the $4 resistance, it could pave the way for a rebound to $13-15.
As XRP approaches these key levels, the coming months will determine whether it faces a sharp decline or embarks on a promising upward journey.
