XRP runs the risk of dropping as low as $0.34 unless bulls can fight back as the cryptocurrency faces a crucial support level.
XRP has had a less-than-stellar start to 2024, dropping over 9% from its yearly open value of $0.62. However, there could be more losses ahead unless bulls can rally to push the cryptocurrency above the critical $0.55 level.
Prominent crypto trader Ali Charts highlighted XRP’s recent struggles in a post on X, including how low XRP could fall if the current support fails to hold. Specifically, he noted that XRP faces a sell-off scenario that could see its price fall as low as $0.34.
Meanwhile, it is worth noting that the $0.34 support forms at the lower range of the falling wedge pattern. The charts reveal a support level between $0.48 to $0.46, from which the bulls could also stage a comeback if the crucial $0.55 level is lost.
The $0.55 threshold currently rests at the lower trendline of an ascending parallel channel that XRP has continued to trade in since 2022. Breaking below the $0.55 level would result in a breach below the lower trendline of the channel.
Crypto Market Faces Crucial Moment Post ETF Hype
It is noteworthy that XRP’s latest struggles bear a semblance to most of the crypto market, with Bitcoin especially also holding on to a critical support level. The more popular cryptocurrency has barely managed a stay above the $42,000 level, briefly dropping as low as $41,800 earlier this week.
Thus, barring any sudden development, XRP’s fate, as well as that of most leading crypto assets, could be largely defined by BTC’s ability to turn the $42,000 mark into a springboard for a strong recovery. Bitcoin trades at $42,570 at the time of writing, with XRP hanging in at a $0.56 price.
A market rally that was largely led by anticipation for spot Bitcoin ETFs in the United States has since stalled as investors await the next catalyst for bullish price action. Ideally, the upcoming Bitcoin halving and huge inflows into Bitcoin ETFs could be the next big talking point if the market stages a reversal.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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