In the ever-evolving world of cryptocurrency, XRP, a vital component of the Ripple blockchain, is currently facing potential bearish momentum. Renowned crypto analyst EGRAG Crypto has raised concerns about a possible 74% drop in XRP’s price. This alarming prediction comes alongside a negative turn in the XRP funding rate and an overall decline in the broader market, which has resulted in XRP’s price decreasing by 5% over the past week.
XRP To Face 74% Crash
In a recent analysis shared through a tweet, EGRAG Crypto delved into the patterns observed in XRP’s historical price movements. The analysis warns of a significant potential crash, predicting an average drop of 74% if past trends repeat themselves. Historically, XRP has experienced substantial declines, ranging from 64% to nearly 90%, each time it approached the critical Fork C level. Should this trend continue, XRP could potentially plummet to $1, a crucial point that has historically posed significant challenges for the cryptocurrency.
Avoiding the Crash: The $4 Barrier
To avert this bearish scenario, EGRAG emphasizes the importance of XRP closing above the $4 mark on a weekly chart with strong confirmation. This critical move must occur before March 10, 2025, as failing to reach this target could trigger another significant downturn. Adding urgency to this situation is the upcoming lunar eclipse on March 14, a phenomenon that has historically coincided with increased market volatility and price drops.
Funding Rates Add Pressure
The situation for XRP is further complicated by its funding rates turning negative. This shift indicates a growing number of traders betting against XRP’s price, thereby applying additional pressure on its current position. Negative funding rates are often indicative of bearish sentiment within the market, making it increasingly challenging for XRP to maintain its stability amidst these pressures.
XRP Long-term Aim: $15
Despite the short-term concerns surrounding XRP, EGRAG maintains a bullish long-term outlook for the cryptocurrency. Should XRP successfully break past the critical $4 resistance level, it could potentially pave the way for a rally towards the $13-$15 range. As XRP approaches these pivotal levels, the coming months will be crucial in determining whether it faces a steep decline or embarks on a promising upward journey.
