thecryptobasic.com
A crypto analyst, Mad Whale, has shared a daring prediction for XRP following a technical analysis of the asset’s price action.
According to the trader, XRP is facing a critical breakdown risk, with the potential for a major drop if key support levels fail to hold.
XRP in a Downtrend: Key Resistance and Support Levels
Mad Whale’s analysis highlights that XRP is currently trading within a descending channel. Notably, the price is approaching a critical resistance level near the psychological $2 mark. If XRP fails to break above this resistance, the analyst believes the asset will continue its descent.
For context, XRP dipped below $2 earlier today as its price plummeted by over 10%. The fall followed earlier declines this week amid the broader market dump. While XRP had firmly defended the $2 level earlier this week, it has ultimately given up the support.
Mad Whale, who identified this risk earlier, called for a short when XRP traded above the level. He pointed out that a key support level exists around $1.90, which marks the first downside target. Notably, XRP briefly dipped to $1.96 but has since recovered above $2 at press time.
The analyst emphasized that the $1.90 zone is crucial for XRP’s short-term stability. If the $1.90 support fails to hold, it could trigger another round of sell-off.
Potential for Another 35% Dip: Profit-Taking Targets for Shorts
Specifically, should XRP break below the $1.90 support, Mad Whale believes a 35% decline toward the $1.50 zone would be next. This level aligns with the lower boundary of the descending channel.
Meanwhile, the analyst believes it could act as a point for price stabilization or even a reversal. Accordingly, traders who are short on XRP may look to take profits near the $1.50 level.
The analyst suggests this could be an ideal point for traders to exit, as it represents the next significant support and a potential market turnaround.
Mad Whale’s sentiment aligns with other analysts on TradingView who have similarly opened shorts on XRP. They agree that the $1.50 level would be an ideal point for a bull comeback.
Meanwhile, some other analysts have expressed caution as XRP hovers around $2, suggesting an unexpected rebound could unfold from this level.