XRP Falls Below $3: Analyst Predicts further Drops to $2.6 or potentially $2
In a recent analysis posted on X post, analyst Ali Martinez has highlighted a crucial support level for XRP, suggesting that the cryptocurrency could find stability around $2.80 to $2.85. This level, which aligns with multiple technical factors including the 50-day moving average, a value area high, and is reinforced by buying volume, could potentially act as a price floor that supports a bullish outlook if held.
The Support Level as a Price Linchpin
The $2.80 level acts as a strong support, confirmed by technical indicators like the 50-day Simple Moving Average (SMA) and on-chain trading volume showing demand strength. Repeated retests of $2.8–$2.85 have reinforced its significance as a technical and psychological linchpin. Holding above this support may trigger a recovery rally towards $3.1–$3.5 in the short term.
Potential Downside Targets
If XRP breaks below $2.80, downside targets could include a retest of $2.65, which would signal renewed bearish pressure and potential continuation of the 2025 downtrend. It's important to note that a breakdown below $2.65 might imply further decline.
Longer-Term Technical Patterns
Two significant technical patterns have emerged for XRP. A symmetrical triangle formation near $3.12 suggests a possible breakout with upside targets between $4.40 and $5.80 in 2025, conditional on breaking above roughly $3.35. A cup and handle pattern also hints at bullish continuation if resistance is overcome, with broader price targets extending much higher (e.g., $7–$8 and beyond).
Analysts anticipate XRP could trade in a broad range between around $2.05 on the bearish side and $5.81 on the bullish side for 2025, influenced by institutional adoption and market conditions.
On-Chain Data Complimenting the Technical Picture
On-chain data complements this technical picture, with strong institutional interest and increased trading volumes signaling demand around current levels, as well as growing utility through Ripple’s On-Demand Liquidity (ODL) service and partnerships, which add underlying fundamental support.
Summary of Predicted Support Levels and Related Targets
| Support Level | Description | Potential Upside Targets | |-----------------------|---------------------------------------------------------|------------------------------------| | $2.80–$2.85 | Strong technical support (50-day MA, value area high) | $3.1–$3.5 (near term rally) | | $2.65 (if breakdown) | Next downside retest, bearish continuation possible | Below $2.65 implies further decline | | $3.35 (breakout point) | Technical breakout median point (triangle apex) | $4.40–$5.80 (2025 targets) | | Above $5 | Longer-term bullish targets following breakout & catalysts | $7–$8 and potentially $25+ (bullish cycles) |
In conclusion, the predicted key support for XRP is firmly at $2.80, with solid technical and on-chain validation. Failure to hold this level risks retesting lower supports. Conversely, maintaining above it could pave the way for further bullish gains in line with ongoing institutional adoption and positive technical setups. The chart shared by the analyst shows the Parallel Channel for XRP, a technical analysis pattern that forms when an asset's price consolidates between two parallel trendlines. XRP has made multiple retests of the $3.3 level, but each attempt has been rejected. If the market mood is bullish, investors in profit may buy more when the price retests their cost basis, considering it a 'dip.' However, if XRP cannot reclaim the $3.3 level, it could be at risk of further drop, potentially heading to $2.6 or even $2, the midway line or lower bound of the channel, respectively. A breakout of either line of the Parallel Channel can trigger a continuation of the trend in that direction.
- The $2.80 level serves as a robust support for XRP, reinforced by the 50-day Simple Moving Average (SMA) and high trading volume, indicating demand strength.
- If XRP breaks below $2.80, a retest of $2.65 could occur, signaling renewed bearish pressure and potential continuation of the 2025 downtrend.
- Analysts anticipate that institutional adoption and market conditions will influence XRP's trading range for 2025, potentially ranging between $2.05 on the bearish side and $5.81 on the bullish side.
- On-chain data offers additional support to the technical picture, with strong institutional interest, increased trading volumes, and the growing utility of Ripple’s On-Demand Liquidity (ODL) service and partnerships.
