thecryptobasic.com
XRP has descended to the pivotal $0.51 price support amid a pronounced downtrend across the broader market, prompting investors to contemplate the future trajectory of the altcoin.
The $0.51 threshold represents one of the most decisive price territories for XRP, as a drop below the support at this level could bring the asset underneath the $0.50 psychological point, with the next defense resident at Fib. 0, currently stationed at $0.4959.
As the bears took control of the scene yesterday, battering Bitcoin (BTC) below the potent $40,000 support and relegating Ethereum (ETH) to $2,168, XRP witnessed similar bearish pressure, recording a drop below $0.51 for the first time since Jan. 3.
Once the bears breached $0.51, the slump became more apparent, as XRP collapsed below $0.50, dropping to $0.4962, its lowest price since October 2023.
This incident exposed the significance of the $0.51, as the altcoin immediately recovered the price level to hedge against steeper declines.
What’s Next for XRP?
XRP now hovers around this pivotal defense point, triggering speculation on its next price direction. However, market analysts have voiced opinions on this matter. One such analyst is Ali Martinez, a veteran market watcher.
The Crypto Basic called attention to Ali’s disclosures in a report on Jan. 18. According to the analyst, XRP needs to hold above the $0.55 price threshold. He noted that the crypto asset could witness a steep drop to the $0.34 price threshold should it relinquish $0.55.
Nonetheless, XRP could still find strength in the $0.48 to $0.46 price range. This threshold serves as XRP’s last defense following a breach below $0.55. The bulls could leverage it to stage a comeback if selling pressure diminishes at this level. However, a full-blown downward pressure could break this range.
In addition, XRP Shark, another market analyst, emphasized that the ongoing market onslaught could trigger a steeper XRP slump to the range between $0.35 and $0.45. The analyst sees this level as an attractive buy opportunity, believing it to be XRP’s bottom price level.
He expects XRP to register a massive recovery campaign following a drop to the $0.35 – $0.45 price range. However, there remains room for further declines below $0.30. According to XRP Shark, such a decline would invalidate his analysis, triggering market concerns.
Possible Drop to $0.28?
In a recent analysis, JD, a chartist and crypto market analyst, explored the possibility of further drops while trying to determine XRP’s next direction. He identified a symmetrical triangle pattern that XRP has been stuck in since 2021 on the weekly timeframe.
Data from his chart shows that the crypto asset is now heading toward the lower trendline of the triangle. JD spotlighted an orange box he drew last November, which resides between Fibonacci 0.618 and 0.786, overlapping the lower trendline.
JD sees this orange box as an attractive level for a dollar-cost averaging (DCA) move, noting that a drop toward the box is possible. He noted plans to initiate a “buy-the-dip” campaign should XRP hit the orange box, heavily filling his bags between $0.28 and $0.33.
The analyst also plans to keep procuring more tokens at the $0.45, $0.51, and $0.59 price levels. Meanwhile, as XRP currently trades for $0.5160, derivatives volume has surged 23% over the past 24 hours to $1.30 billion. The asset has recorded a 7-day drop of 10.76%.