The post Is XRP on the Brink of a 74% Crash? Analyst Warns of Key Levels to Watch appeared first on Coinpedia Fintech News
The cryptocurrency XRP, a backbone of the Ripple blockchain, faces potential bearish momentum, with crypto analyst EGRAG Crypto sounding the alarm about a possible 74% price drop. The analysis comes amid a XRP funding rate turing negative along with the broader market decline, which has seen XRP price dropping 5% in a week.
XRP To Face 4% Crash
In a recent tweet post EGRAG Crypto has shared insights into XRP’s price movement, highlighting key patterns observed in its historical chart.
According to the analysis, XRP has faced significant drops ranging from 64% to nearly 90% every time when it hit Fork C. And this time he is predicting an average drop of 74%. If this trend repeats, XRP could fall to $1, marking a critical test for the cryptocurrency.
Historical data reveals that this level has posed significant challenges for XRP over the past decade, often leading to sharp price declines.
For instance, XRP experienced sharp corrections in December 2015, May 2017, September 2018, and April 2021, with an average drop of 74%.
Avoiding the Crash: The $4 Barrier
To avoid this bearish scenario, EGRAG noting the importance of XRP closing above $4 on a weekly chart with strong confirmation. He notes that this must happen before March 10, 2025, as a failure to do so could trigger another significant downturn.
Adding to the urgency is the upcoming lunar eclipse on March 14, which EGRAG points out has historically coincided with market volatility and price drops.
Funding Rates Add Pressure
The situation is further complicated by XRP’s funding rates, which have turned negative. This indicates a higher number of traders betting against XRP’s price, adding pressure to its current position.
Negative funding rates often reflect bearish sentiment in the market, making it more challenging for XRP to maintain stability.
XRP Longterm Aim: $15
Despite these short-term concerns, EGRAG maintains a bullish long-term outlook for XRP. He believes that if XRP manages to break past the $4 resistance level, it could pave the way for a rally toward $13-$15.
As XRP approaches these critical levels, the coming months will determine whether it faces a steep decline or embarks on a promising upward journey.