Amid the ongoing XRP struggles, a market analyst has identified a level that could create serious downside risk if the altcoin fails to hold it as support.
Despite multiple bullish developments surrounding XRP, including the official close of the Ripple vs. SEC legal battle and the recent update around spot ETF filings, XRP has failed to recover with the rest of the altcoin market.
XRP Facing Unique Struggles at $3
Notably, while Ethereum (ETH) has spiked 9.36% over the past week, with BNB rising 4.73% and Solana (SOL) surging 11.61% within the same period, XRP is only up 0.08%, mirroring the struggles faced uniquely by Bitcoin (BTC), which has since dropped to the $112,000 price region.
With XRP now battling the bears at $3, a market analyst who adopts the Joe Swanson persona from “Family Guy” has suggested that it might still be sitting in a comfortable position. However, he believes XRP could just as easily lose this position if it slumps below the $2.8 pivotal support level.
According to Swanson’s latest analysis, this $2.8 price region is the “make-or-break” level for XRP. Notably, this indicates that the price mark represents a critical level that could determine whether XRP drops to lower prices or holds firm around the current position.
Specifically, between Tuesday, Aug. 19, and Friday, Aug. 22, XRP repeatedly retested the support at this $2.8 area. However, after the four consecutive days of retest, XRP recovered by a massive 7.81% on Aug. 22, soaring to a peak of $3.1 before witnessing a mild pullback.
Despite Recent Comeback, a Drop Below $2.8 is “Game Over”
Swanson noted that XRP staged an impressive comeback during this run, as the bulls stepped in to support the price action. According to him, XRP now maintains a position above some of its key Exponential Moving Averages (EMAs). Swanson says with this momentum, XRP eyes the $3.1 to $3.5 price level.
However, he insinuated that a drop toward and below the $2.8 price level is still not out of the question. The market analyst warned that if XRP collapses again to the $2.8 support and loses it, it’s “game over.” With XRP now trading for $2.97, a 6% drop from here would push it below $2.8.
Meanwhile, EGRAG Crypto, another market analyst, suggests there could still be hope for XRP if it drops below $2.8 but holds above $2.65. According to a previous analysis, EGRAG noted that XRP’s price movements represent noise until it breaks above $3.65 or slumps below $2.65. In either case, it could push into new regions.
Interestingly, market watcher CryptoInsightUK is especially bullish on XRP despite the struggles. In one of his recent reports, he identified massive liquidity between the $3.1 and $3.7 price levels, which Swanson believes could be the next target if momentum holds. According to CryptoInsightUK, a push to a new all-time high of over $4.2 is coming.
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.
