After reaching a new 7-year peak driven by robust purchases, the XRP price has retraced as it seeks fresh support levels. This downward movement has been fueled by the overarching bearish mood that has affected the market as the Bitcoin price has struggled to recapture its all-time highs, once again jeopardizing altcoins. Specifically, the XRP price is confronted with distinct obstacles, particularly concerning purchasing, which could initiate another phase of decline.
Possible Trajectories for the XRP Price
Crypto analyst Thecafetrader has outlined the potential paths that the XRP price might take following its downturn. These encompass both bullish and bearish movements, with outcomes dependent on buyers and the strength of their positions during this period.
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The first observation from the analyst is that the XRP price surge was spurred by significant buyers. These activities had catalyzed a breakout above the 2024 highs, but confronted resistance from sellers once again. This indicates that bulls are caught at elevated price levels within their positions. Yet, this may not be the most alarming issue.
Another point noted by the analyst is the considerable drop in trading volume even as XRP has reached new highs this year. For instance, back in 2024, when the XRP price first breached the $3 threshold, daily trading volume peaked above $78 billion. However, with new highs surpassing $3.6, the top daily trading volume recorded was slightly over $41 billion. Thus, this suggests a significant decrease in buying enthusiasm, particularly as confidence has been affected by the price drop.
Interestingly, the buyers are not the sole group seemingly refraining from engaging with the XRP altcoin at this juncture. According to the analyst, there are no “genuine” sellers currently entering the market. Thus, there remains bullish momentum for a potential rebound to $4.64.
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Shifting to the more bearish perspective, the analyst explains that the XRP price requires strong buyers to maintain an upward trend. Should these buyers fail to sustain support, then the XRP price risks plunging back down from the initial $2.95 focal point.
The targets for this potential decline are identified by the crypto analyst as starting at $3.13. However, the more the price falters, the lower these targets become. Next up is the $2.95 zone, followed by $2.15-$2.3, which the analyst describes as a “good entry price.” Finally, the range of $1.60-$1.93 is marked as a “steal.”
Featured image from Dall.E, chart from TradingView.com