thecryptobasic.com
A market pundit has outlined three bearish targets for $XRP amid the latest slump on the back of the market-wide downtrend.
For context, this prevalent downtrend pushed Bitcoin ($BTC), the leading crypto asset, below $80,000 for the first time since early November. Currently, $BTC is down 16.48% this week, and the rest of the market has collapsed alongside, with $XRP also suffering major losses.
In particular, $XRP has dropped 23.23% over the past week, having given up several crucial support levels around $2. With the asset down by another 7.5% this morning, the bears are now knocking at the lowest end of the $2 mark, a hair’s breadth away from pushing $XRP below the pivotal region.
Temporary Relief for $XRP?
At this critical moment, market analyst Arina Karayi has presented three bearish targets for $XRP in a TradingView analysis. Interestingly, the asset appears to have already moved below the first bearish target at $2.23. The bears decisively retook this level on Wednesday, Feb. 26.
However, Karayi predicted in her report that the bulls might take over, albeit for a moment. According to the analyst, $XRP is likely to witness a short period of bullish recovery, which could push its price above $2.5085. She cited historical data, with $XRP witnessing similar recoveries at this level in the past.
Nonetheless, the analyst believes this recovery would be short-lived. For context, $XRP is likely to rise to the upper trendline of a descending channel that has dictated its price action since mid-January. If the projected recovery retests the upper trendline at $2.6, Karayi expects another pullback.
Bearish Targets for $XRP
According to the analyst, sellers would regain control of the scene, bringing the other two bearish targets into play. Notably, below the first bearish target at $2.23 is a second one around $1.96, which would translate to a drop underneath $2. Recall that analysts believe $XRP remains bullish as long as it holds above $2.
With $XRP currently changing hands at $2.02, a mild 2.97% drop from this area would trigger a slump to the second bear target. It is important to note that the bears have already defined Karayi’s projection of a short-term recovery and have instead bypassed this rebound to push the asset to lower regions.
Below $1.96 is a third bearish target at $1.57, representing a low last witnessed in late November 2024. Such a target represents a 22% drop from current values and a 54% collapse from the yearly peak of $3.4.
However, Karayi admits that the bulls could invalidate this bearish projection if Bitcoin’s dominance drops. After a massive slump earlier this week, the $BTC market dominance has continued to increase since yesterday, now at 60.84%. A drop in this metric could translate to more capital entering altcoins, giving them an opportunity to demonstrate resilience.