XRP holders are at a critical juncture as the cryptocurrency faces mounting bearish pressure. After a bullish rally, XRP has entered a downward trend, prompting speculation about its near-term future. A key technical indicator, the Moving Average Convergence Divergence (MACD), recently flashed a “death cross,” signaling potential further declines.
A death cross occurs when a short-term moving average falls below a long-term moving average, historically indicating the start of a sustained downtrend. Since this bearish signal, XRP has already dropped 31%, with a total decline of 37% since its last peak. Historical patterns suggest that the coin could experience deeper losses if this trend continues.
History Repeating Itself?
This isn’t the first time the coin has encountered such a bearish setup. In February 2018, after a similar death cross, XRP suffered a dramatic 90% collapse, plummeting from over $3 to below $0.30. A similar pattern emerged in May 2021, leading to a 53% drop, followed by a further 76% decline later that year. These historical data points highlight the potential severity of XRP’s current predicament.
How Low Could XRP Drop?
If history repeats itself, XRP could see another substantial downturn. A 53% drop from its current price would bring it to approximately $1.40, while a 76% decline could send it tumbling to $0.71. In the worst-case scenario, mirroring the 2018 collapse, XRP could fall below $0.30.
Is There Hope for a Rebound?
Despite the grim outlook, XRP may still find support at key levels. If the cryptocurrency can hold above the crucial $2 mark, it could stave off a steeper decline. However, a break below this level might open the floodgates to further losses. Some analysts point to increased whale accumulation and potential market overreaction as signs that XRP could be nearing a bottom.
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Will XRP stage a comeback as it has in the past, or is this the beginning of a deeper correction? The coming weeks will be crucial in determining whether the cryptocurrency can regain its footing or if further losses are on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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