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Amid the ongoing $XRP struggles, a market analyst has identified a level that could create serious downside risk if the altcoin fails to hold it as support.
Despite multiple bullish developments surrounding $XRP, including the official close of the Ripple vs. SEC legal battle and the recent update around spot ETF filings, $XRP has failed to recover with the rest of the altcoin market.
$XRP Facing Unique Struggles at $3
Notably, while Ethereum (ETH) has spiked 9.36% over the past week, with BNB rising 4.73% and Solana (SOL) surging 11.61% within the same period, $XRP is only up 0.08%, mirroring the struggles faced uniquely by Bitcoin (BTC), which has since dropped to the $112,000 price region.
Specifically, between Tuesday, Aug. 19, and Friday, Aug. 22, $XRP repeatedly retested the support at this $2.8 area. However, after the four consecutive days of retest, $XRP recovered by a massive 7.81% on Aug. 22, soaring to a peak of $3.1 before witnessing a mild pullback.
Despite Recent Comeback, a Drop Below $2.8 is “Game Over”
Swanson noted that $XRP staged an impressive comeback during this run, as the bulls stepped in to support the price action. According to him, $XRP now maintains a position above some of its key Exponential Moving Averages (EMAs). Swanson says with this momentum, $XRP eyes the $3.1 to $3.5 price level.
However, he insinuated that a drop toward and below the $2.8 price level is still not out of the question. The market analyst warned that if $XRP collapses again to the $2.8 support and loses it, it’s “game over.” With $XRP now trading for $2.97, a 6% drop from here would push it below $2.8.
Meanwhile, EGRAG Crypto, another market analyst, suggests there could still be hope for $XRP if it drops below $2.8 but holds above $2.65. According to a previous analysis, EGRAG noted that $XRP’s price movements represent noise until it breaks above $3.65 or slumps below $2.65. In either case, it could push into new regions.
Interestingly, market watcher CryptoInsightUK is especially bullish on $XRP despite the struggles. In one of his recent reports, he identified massive liquidity between the $3.1 and $3.7 price levels, which Swanson believes could be the next target if momentum holds. According to CryptoInsightUK, a push to a new all-time high of over $4.2 is coming.