XRP Price Declines After Surge: Can it Bounce Back to $3?
XRP Price– XRP, the cryptocurrency associated with Ripple, reached a significant milestone recently by reclaiming the $3 mark, a price point it last hit during the 2017 bull run. However, the momentum was short-lived as the token was impacted by broader macroeconomic factors, including the ongoing US trade war initiated by former President Donald Trump. As a result, XRP fell below the $3 level once again earlier this week.
XRP Price Action: A 30% Dip from Recent Highs
As of February 6, XRP was trading around $2.40, a significant 30% drop from its recent record high of $3.40. Despite the price correction, XRP has still managed to remain up by nearly 400% from its local low of $0.50, which was recorded in November 2024. This dramatic rise has sparked a period of consolidation, with traders waiting for more clear signals to determine the next market direction for the token.
XRP’s Price Action: Will It Drop Further?
According to popular market analyst Credibull Crypto, XRP may experience a further drop of around 30-45% in the coming weeks. In his analysis, he points to the $1.60-$1.30 region as the potential “local lows” where the price could eventually find support. This area has been highlighted as a significant demand zone for XRP, with traders anticipating a rebound if the price approaches these levels.
Analyst Nishant Bhardwaj’s Insights: Monitoring Support Levels
Fellow analyst Nishant Bhardwaj concurs with the $1.60 downside target and emphasizes the importance of watching the $2.50 support level for XRP. Bhardwaj explained in a February 6 X post: “Strong bounce from sub $2 levels suggests demand, but bearish pressure persists. Watch $2.50. A breakdown could lead to $2.00 & $1.61 support tests.”
The $1.60 price level, in particular, is notable because it sits just 20 cents below the 200-day exponential moving average (EMA), a key technical indicator that traders often use to gauge long-term price trends. As XRP hovers near this critical support, the price could experience a substantial rebound, especially if the demand for the token strengthens within the $1.60-$1.30 range.
Rising Accumulation of XRP by Whales and South Korean Traders
Despite the short-term volatility, market activity shows that certain investor groups continue to accumulate XRP, viewing the current price dip as an opportunity. One significant observation comes from South Korean traders, who have historically played a crucial role in determining retail sentiment and speculative trends in the cryptocurrency market.
Cumulative volume delta (CVD) charts from analyst LTRD reveal that traders on the Upbit exchange aggressively bought Bitcoin (BTC) and XRP while selling Ether (ETH) during the latest market correction. This indicates a strategic shift in capital, with South Korean investors preferring the safety of BTC and XRP over Ethereum in the current market environment.
XRP’s steady accumulation by traders, particularly in contrast to the selling pressure on Ethereum, signals strong demand for the token among certain investor segments. Notably, Bybit traders have also mirrored this trend, with XRP purchases increasing throughout the recent market dip. This cross-exchange accumulation further reinforces the notion that XRP remains a highly favored asset for certain investors.
XRP’s Long-Term Outlook: Optimistic Predictions
While XRP is currently experiencing a period of consolidation and market uncertainty, long-term predictions for the token remain positive. Crypto analyst Dark Defender has predicted that XRP could potentially reach $5.85 in the short term, with an even more bullish outlook for the future, targeting $18.22 based on Elliott Wave Theory.
Similarly, XForceGlobal’s analysis places XRP within the fourth wave on the daily chart, indicating that a final push toward the $5-$10 range could be on the horizon. These optimistic price targets suggest that, despite short-term volatility, XRP could experience significant growth in the future, particularly if the broader cryptocurrency market remains bullish.
XRP’s Resilience Amid Market Volatility
In conclusion, XRP is currently navigating a volatile phase marked by price consolidation, but its longer-term outlook remains promising. The support levels around $2.50 and the $1.60-$1.30 region are crucial in determining the next direction for the token. As geopolitical factors, such as the ongoing conflict in Ukraine, continue to influence market sentiment, XRP may see continued demand from traders and institutional investors alike.
For now, investors are closely monitoring key price levels, and if XRP manages to maintain support and avoid further significant losses, it could continue its upward trajectory. While short-term fluctuations are expected, XRP’s position in the market remains strong, with many analysts forecasting substantial gains for the token in the coming months.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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