The cryptocurrency XRP, integral to the Ripple blockchain, is navigating through turbulent waters as signs of a potential bearish trend emerge. Prominent crypto analyst EGRAG Crypto has issued a cautionary note regarding a possible 74% price drop for XRP. This analysis comes amidst a broader market decline, with XRP experiencing a 5% price dip over the past week.
XRP’s Potential Price Decline: A Closer Look
In a recent analysis shared via Twitter, EGRAG Crypto shed light on XRP’s price trends, emphasizing significant historical patterns. The analysis suggests that XRP has previously encountered substantial declines, ranging from 64% to nearly 90%, each time it reached a particular threshold known as Fork C. This time, EGRAG predicts an average drop of 74%. Should this pattern reoccur, XRP might fall to $1, posing a crucial test for the cryptocurrency.
Historically, this price level has been a challenging hurdle for XRP over the past decade, often leading to noticeable price corrections. For example, XRP underwent significant declines in December 2015, May 2017, September 2018, and April 2021, averaging a 74% dip during these periods.
Strategies to Avert the Crash: The Importance of the $4 Threshold
To counteract this potential bearish scenario, EGRAG emphasizes the critical need for XRP to close above $4 on a weekly chart with robust confirmation. This milestone must be achieved by March 10, 2025, to prevent another substantial downturn. Adding to the urgency, EGRAG highlights the upcoming lunar eclipse on March 14, historically linked with market volatility and potential price drops.
The Impact of Negative Funding Rates
Compounding the situation are XRP’s funding rates, which have turned negative. This indicates an increase in traders wagering against XRP’s price, thereby exerting additional pressure on its current standing. Negative funding rates typically reflect a bearish market sentiment, making it more challenging for XRP to stabilize.
A Bullish Long-Term Vision for XRP: Targeting $15
Despite these short-term challenges, EGRAG maintains an optimistic long-term perspective for XRP. He asserts that if XRP can successfully surpass the $4 resistance level, it may set the stage for a rally towards the $13-$15 range. As XRP approaches these pivotal levels, the coming months will be crucial in determining whether it endures a significant decline or embarks on an encouraging upward trajectory.
