Analyst Who Predicted Latest XRP Crash Now Identifies What Could Come Next as XRP Holds $2

A market analyst who accurately predicted the recent XRP crash now identifies what could come next as prices stabilize.

For context, the broader crypto market recently witnessed a sharp downturn, leading to over $2.2 billion in liquidations within 24 hours. This marked the worst liquidation event since the collapse of FTX. 

The crash came from growing concerns over a potential trade war following U.S. President Donald Trump’s decision to impose high tariffs on imports from Mexico, Canada, and China.  

Amid the chaos, XRP suffered a drop, falling below the $3 level it had maintained since mid-January. At its lowest, XRP touched $1.7 before rebounding to trade above $2. Despite this recovery, the asset is down 15.73% over the past day.  

Initial XRP Price Prediction and Future Outlook  

Interestingly, before this drop, market analyst EGRAG previously warned about a possible XRP downturn at a time when XRP traded at the lower end of the $3 mark.

In his initial Jan. 29 analysis, he noted that a 40% price drop was likely, citing a bearish “shooting star” candlestick formation on the monthly timeframe. He explained that this pattern often leads to bearish trend reversals.

EGRAG highlighted that for XRP to avoid massive losses, trading volume needed to reach at least a medium level. He also pointed out that if the next candle closed below $1.83, a stronger downtrend could take place. 

This prediction appears to have materialized, with XRP eventually collapsing to a new yearly low of $1.76 during the latest crash. Following the crash, EGRAG has now presented his future outlook. He noted that bulls were actively buying the dip, helping the price stabilize. 

#XRP – Before and After the Crash:

✅Before the Crash:
I pointed out in the chart that a 40% drop was possible, along with the target and the edge of the channel.
✅After the Crash:
Now, the bulls are buying up everything! We’ve kept things steady, and our next goal is to push… pic.twitter.com/ccmvRlyMz9

— EGRAG CRYPTO (@egragcrypto) February 3, 2025

The market analyst now sees $3 as the next major target. He believes a new bullish wave could begin if XRP reclaims this level. His chart suggests that the altcoin recently bounced off a support trendline when it recovered from the drop below $2, confirming the case for a potential rebound.  

The Mechanics Behind the Latest XRP Crash 

Meanwhile, market analyst Dom also discussed what exacerbated the recent XRP drop. He revealed that the order book had little liquidity as market makers withdrew bids. 

Notably, as a result, when around $300 million in sell orders flooded the market, there were no immediate buyers to absorb the selling pressure. This led to a sharp price collapse.  

$XRP

For all of you wondering how or why this happens

The orderbook was AIR. Market makers pulled any bids there

Since today, -$300 MILLION net market sold into literal empty orderbooks

This is the result.

This is why they say Bitmex shutting down the exchange in 2020… pic.twitter.com/jAKmZANMgn

— Dom (@traderview2) February 3, 2025

He compared the situation to the 2020 Bitcoin crash, where BitMEX halted trading to prevent BTC from dropping to lower levels. In XRP’s case, with an empty order book, heavy selling pressure pushed the price down rapidly until it reached areas with resting buy orders.  

However, Dom pointed out that XRP rebounded quickly after the crash. Within an hour, the price surged 29% as the order book was wiped clean. He explained that once the forced selling stopped, prices floated back up, much like a vacuum effect.  

Anbessa’s Perspective on XRP’s Next Move  

Another market analyst, Anbessa, stated that XRP was attempting to hold above its mid-range support level. He had previously expected consolidation around this region before any major movement.  

Anbessa noted that XRP was showing resilience despite the recent downturn. He emphasized that the bull market was still intact and dismissed concerns from skeptics. According to him, XRP is now consolidating, and traders should look for a safe entry. 

He suggested that reclaiming $2.45 would present a favorable buying opportunity. At press time, XRP changes hands at $2.34, with volatility dropping to lower levels. A resurgence of buying activity could push prices back above $2.45, giving the bulls an avenue to aim for $3.