Chartist Predicts XRP’s Next Move Following Stability Above $2

The market analyst who correctly predicted XRP’s recent downturn has shared his outlook on the token’s next move, as it stabilizes above $2. Recently, the cryptocurrency market experienced extreme volatility, resulting in a staggering $2.2 billion in liquidations within a single day – the largest event since the FTX collapse. This downturn was triggered by concerns over a potential trade war, sparked by former U.S. President Donald Trump’s decision to impose hefty tariffs on imports from Mexico, Canada, and China.

XRP, trading above $3 since mid-January, was not immune to the market’s turbulence. During the crash, it fell to as low as $1.7, before recovering to its current price of $2.7. 

EGRAG’s Forecast: Bearish Reversal and Recovery Potential

EGRAG warned about a potential dip in XRP’s price before the recent drop. In his analysis on January 29, he predicted a 40% price drop when the asset was trading near the lower $3 range. EGRAG identified a bearish candlestick pattern known as a “shooting star,” which often signals a trend reversal to the downside. He emphasized that for the token to avoid significant losses, it must maintain a medium-level trading volume. Additionally, he pointed out that if XRP falls below $1.83, the fall could trigger a stronger downtrend.

This prediction materialized as the token dipped to a new yearly low of $1.76 during the crash. Following this decline, EGRAG highlighted that buying activity had emerged, stabilizing the price above $2. He now sees $3 as a key resistance level. EGRAG believes that if the token reclaims this price point, it could set the stage for a potential bullish trend. His technical analysis also suggests that the asset recently bounced off a support trendline, further supporting the case for a possible rebound.

The Role of Liquidity in Price Drop

Market analyst Dom provided additional insight into the mechanics of the recent XRP price crash, explaining that the order book was significantly low on liquidity as market makers withdrew their bids. This lack of buyers left the market vulnerable when large sell orders, totaling around $300 million, flooded in. Without immediate buyers to absorb the selling pressure, the asset’s price plummeted quickly.

Dom compared this situation to the 2020 Bitcoin crash, where trading platforms like BitMEX halted trading to prevent prices from spiraling further. In XRP’s case, the absence of liquidity exacerbated the sell-off, pushing the price down rapidly until buy orders at lower levels were triggered. Once the forced selling ceased, the asset rebounded sharply, recovering 29% within an hour as the order book was cleared, and the market returned to a more balanced state.

Consolidation and Bullish Potential

Another analyst, Anbessa, discussed XRP’s current price action, noting that the cryptocurrency appears to be holding steady above its mid-range support level. Anbessa had anticipated consolidation in this region before any significant movement. He pointed out that despite the recent drop, the token has shown resilience, with the overall bullish market sentiment still intact.

Anbessa highlighted that the digital asset has now broken through its key resistance level of $2.45. As volatility subsides, this breakout strengthens bullish momentum, potentially paving the way for a rally toward the next resistance level at $3.

Following the asset’s recent decline, its stabilization above $2.45 has sparked diverse predictions from analysts about its next move. While some analysts foresee a bearish future, EGRAG suggests a potential rise to $3 if the current support level remains intact. Analysts Dom and Anbessa offer differing insights: Dom emphasizes the impact of liquidity on the downturn, whereas Anbessa’s optimistic outlook has been validated by the token’s successful rebound above a crucial resistance level.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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