XRP Drops 45.93% From January Highs, Analysts Eye $1.25 Support
1min read XRP, the cryptocurrency associated with Ripple, has experienced a significant correction from its recent highs, leading to a bearish outlook among analysts. The token, which briefly reached $3.40 in mid-January, has since declined by 45.93% from its local peak, currently trading at $2.18. This drop has pushed XRP out of the top three cryptocurrencies by market cap, with Tether (USDT) reclaiming the third spot. Despite several positive developments for Ripple, including regulatory clarity following the SEC lawsuit and broader market optimism, these factors have not been sufficient to sustain lasting momentum for XRP.
Market analyst Ali Martinez has identified $3 as a critical level for XRP to reclaim in order to invalidate a bearish head-and-shoulders pattern. Until this level is reached, the risk remains skewed to the downside. Martinez has also highlighted $2 as the immediate support level to watch, noting that if this level breaks, XRP could revisit $1.25, a price not seen in months. This potential drop to $1.25 is seen as a key buying level before XRP can resume its long-term uptrend.
Ask Aime: What's the outlook for XRP after its significant correction?
However, not all analysts share this bearish sentiment. CryptoELITES, a well-followed trader known for catching early moves, remains bullish on the long-term trajectory of XRP. According to CryptoELITES, XRP has already rallied over 600% since he first noticed it at $0.50. Using Fibonacci extension levels, CryptoELITES has projected potential targets for XRP, including a move to $8.41 at the 1.272 extension, followed by $13.59 at 1.414, with a longer-term goal of $15. This would represent a 572.65% gain from current prices and push XRP significantly higher in market cap rankings.
As market volatility increases, traders are closely monitoring XRP for a potential reset that could offer a prime entry point ahead of its next breakout. The current bearish outlook and the potential drop to $1.25 are seen as opportunities for long-term investors to accumulate XRP at a discounted price. The key buying level of $1.25 is considered crucial for XRP to regain its momentum and make new highs in the future.
