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.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
