Expert Shares Target as XRP Loses Breakout Level

With XRP flirting with lower prices, a prominent market analyst has identified an imminent bearish target should current momentum continue.

XRP is looking pretty weak, as prices continue to consolidate in reflection of the broader market trend. The cryptocurrency is down slightly over the past 24 hours, with a weekly correction of 11%. 

However, XRP has managed to remain profitable to those who bought at the start of the year, with a 2.58% YTD increase. Notably, only XRP, BNB, and Tron are profitable to holders in this timeframe among the top 10 by market cap, as the recent correction has led most assets to relinquish earlier gains.

Further XRP Lows?

Meanwhile, analyst Nebraskangooner is calling for further price declines for XRP, potentially taking the token towards the $1.50 area. Why this bearish disposition? He identified a failed breakout as the catalyst for the price crash.

An accompanying chart lays the foundation for this bearish XRP price prediction. It shows that XRP missed a bullish breakout from a descending triangle on the weekly timeframe, spurred by recent downward momentum.

XRP filled the triangle that originated from a rally to the yearly high of $3.66 in July and was close to an upward breakout in late October. However, bears stepped in and prevented this development, driving the token lower.

Eventually, XRP broke below the triangle’s lower support trendline at around $2.2, suggesting it could fall further. Nebraskangooner has set the target of the dump at $1.50, marking a 30% retracement from the current trading price of $2.14.

Long-Term Holders Move from Euphoria to Anxiety

Adding to the bearish momentum is a shift in sentiment among long-term holders. Once euphoric about XRP’s price trajectory, the coin’s persistent underperformance is weakening that enthusiasm.

Glassnode data highlighted this, as these long-term holders first switched from euphoria to denial and are now becoming anxious about XRP. Notably, the analysis measured this mood using the net unrealized profit/loss (NUPL) of long-term holders.

For the uninitiated, this metric measures the profitability of long-term holders by comparing the market cap to the realized cap. A higher NUPL indicates that more holders have unrealized gains, while a lower value suggests the opposite.

The state of anxiety shows moderate profits for long-term holders, but with uncertainty in the market’s direction. This creates more panic selling compared to the denial state, where they have significant profits and euphoric conditions characterized by outsized gains. The sentiment shift comes as XRP flirts with a drop below the psychological $2 price mark.