Key Points:
If XRP breaks below the $3 support level, it may face a decline of about 15%, heading towards $2.60.
Additionally, over $500 million in long liquidation funds below $3 could accelerate selling.
Since the surge in November 2024, XRP (XRP) has repeatedly broken through the $3 mark, but each attempt ultimately ended in a false breakout, accompanied by deeper pullbacks.
On Saturday, the XRP price fell below the $3 support level again, while also touching its four-hour 200 Exponential Moving Average (EMA, green line).
Is it possible for the XRP price to decline further in the coming days? Let's analyze.
XRP is presenting a bearish fractal that could trigger a decline of about 15% in the coming days, heading towards $2.60.
Looking back to September, the token's price formed a dome pattern, then entered a symmetrical triangle consolidation phase, ultimately leading to a sharp decline. This trend pushed the XRP price towards the $2.70 area.
A similar trend played out again in October.
On the four-hour chart, XRP formed another dome pattern and consolidated in a bearish flag. This structure typically leads to a price drop close to the maximum distance between the upper and lower bounds of the flag.
The four-hour Relative Strength Index (RSI) also increased the downside risk, currently pulling back from the overbought zone above 70, with room to drop to the oversold zone at 30.
XRP may first test the flag support level at $2.93. A clear close below this level will confirm the breakdown, potentially opening up downside space to $2.60, nearly a 15% drop from the current price.
This downside target aligns with XRP's 200-day Exponential Moving Average (EMA, blue line in the chart).
If XRP rebounds from the 20-day EMA ($2.93) or the 50-day EMA ($2.52), it could invalidate the bearish expectations and push the price back up towards the $3 area.
According to data platform CoinGlass, the $3 mark for XRP is situated between two major liquidity zones.
Above, there is a significant amount of long liquidation positions in the $3.18 to $3.40 range. For instance, at $3.18, the cumulative short leverage is about $33.81 million, which means if the bulls regain control of the market, it could trigger stop-loss orders, driving the price up.
However, on the downside, the heatmap shows a larger liquidation pool accumulating between $2.89 and $2.73, exceeding $500 million. A decisive closing price for XRP below $3 could trigger a series of long liquidations, pushing towards $2.89 - $2.73. However, staying above $3 leaves room for stop-loss runs towards $3.20 - $3.40.
This article does not contain investment advice or recommendations. Every investment and trade involves risks, and readers should conduct their own research when making decisions.
Related: Stablecoin market surges to $300 billion, boosting the crypto market significantly.
Original: “XRP Falls Below $3: How Low Can the Price Go Next?”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
