Why XRP Could Fall to $1.50 and What It Means for Investors
Well-known market analyst The Block Bull has warned that XRP may experience a significant decline in the coming weeks. After hitting a high of $2.90 in December this year, XRP quickly lost its upward momentum. Meanwhile, the asset appears to have entered a correction phase, indicating further price declines towards $1.50 and beyond.
XRP price will take a big hit
Block Bull believes that a downward trend in XRP may have begun. On December 12, XRP price fell by 2.34%, ending a slight increase. While XRP has since shown some signs of strength, analysts believe the coin could fall to $1.50 next week.
Even this level may not be sustained. If XRP fails to hold above $1.50, it could drop further to $0.50, possibly during the upcoming holiday season. XRP struggled at the $0.50 level for a long time, finally breaking above this level in late 2024.
In addition, Coinpedia reports that 39.43 million XRP tokensValued at $95.5 million, it was transferred to Coinbase. Previously, there were concerns that crypto whales were dumping nearly $100 million worth of XRP, which could affect its price.
Why is XRP struggling?
Despite a massive 105% rise over the past eight days, the coin has fallen significantly due to overall weak conditions in the cryptocurrency market.
Bitcoin’s difficulty staying above $100,000 is a significant factor that creates uncertainty throughout the market. As a result, XRP struggled to move higher and got stuck in a range.
Analysts believe that if XRP fails to break out of this phase, things could get worse. However, the medium-term outlook for XRP remains bearish, with the coin likely to return to its November lows.
A ray of hope!
The recent sell-off has resulted in more than $1 billion in liquidations as many highly leveraged positions are being unwound. While this pushes the price of XRP further down, it also suggests that much of the speculative excess is being cleared.
Despite the pessimistic outlook, some XRP supporters remain hopeful, stating Ripple is about to launch RLUSD stablecoin Introducing and improving regulatory conditions under the new US administration.
As of now, XRP price is around $2.34, down 4% in the past 24 hours, with a market value of $132.93 billion.
