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XRP Struggles After Bitcoin Drop: Will It Dip to $1 Again?
The cryptocurrency market has been witnessing a tumultuous ride lately, with Bitcoin’s recent 15% correction from its all-time high of $108,421. This sudden downturn has triggered a broader market sell-off, sending XRP plummeting alongside other altcoins.
In this article, we will dive into the factors driving XRP’s struggles and what it means for its future trajectory.
XRP faces significant price pressure following Bitcoin’s drop, which has also led to a sharp decline in investor interest. The token’s network growth has been steadily slowing down, accompanied by fewer active addresses. This suggests that investors are progressively losing enthusiasm for the asset, marking a reversal from previous trends.
Moreover, it appears that institutional and individual investors alike have begun offloading their XRP holdings en masse. Data reveals that whales have unloaded an astonishing 110 million tokens between November 29th and December 28th, leading to a precipitous 32% drop in price from its yearly high of $2.90.
This rapid decline has sparked concerns about the token’s potential trajectory. Some analysts predict that XRP could dip as low as $1 once again if this downward trend continues. This possibility would mark a stark contrast to the token’s previous upswing, which has been driven by increased adoption and growing recognition of its utility in cross-border payments.
Despite these ominous signs, there are also positive indicators worth noting. Notably, XRP is still holding strong above its crucial support level of $1.96, a vital sign that maintains its fundamental bullish momentum. Moreover, transaction velocity has reportedly surged recently, which may signal the start of an impending breakout in the near future.
To provide further insight into this market volatility, we consulted with Egrag Crypto, who utilized Fibonacci and Elliott Wave analysis to predict a potential $15 target for XRP by May 2025. This prediction underscores the complexity and unpredictability of the cryptocurrency space.
Ultimately, it remains unclear whether XRP will rebound or continue its downward trajectory. As always, market participants should closely monitor key support and resistance levels while staying vigilant about any developments that could sway investor sentiment.
In this article, we examined the recent turmoil surrounding Bitcoin’s drop and its devastating impact on other cryptocurrencies like XRP. We also touched upon various trends and indicators that could affect the token’s future direction.
Source: cryptotale.org
