XRP’s Dizzying Dive: Another Major Move for Ripple’s Token?

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TL:DR;

  • Ripple‘s cross-border token has taken a tumble, dropping to a two-week low of under $2.7.
  • As the Bollinger Bands squeeze, XRP could be in for another significant move.

XRP Dumps 15%

Ripple’s native token, XRP, has been riding high on the speculation that it might be included in the potential US digital asset reserve. The token soared from under $0.6 in early November to $3.4 in January, matching its all-time high from 2018. However, it failed to breach it and has been on a downward spiral ever since.

The recent market turmoil, which saw Bitcoin plummet below $100,000 for the first time in a week, has not spared XRP. The third-largest crypto asset plunged from $3.15 to a multi-week low of $2.66 (on Bitstamp) before recovering some ground to $2.8 as of now.

This represents a 15% drop in a single day. While this sounds like a significant move, analyst Ali Martinez warns that the Bollinger Bands are squeezing on XRP’s daily chart, which could lead to another “significant price move.”

The Bollinger Bands are squeezing on the $XRP daily chart, signaling that a significant price move could be on the horizon.

— Ali (@ali_charts) January 27, 2025

What’s Next?

Macro trader Jason Pizzino notes that the next support lines for XRP are at $2.3-$2.5. The asset could avoid a price drop to those levels if its daily close is above “the previous swing top at $2.9,” which is not the case right now.

$XRP failing at the 50% extension. Lower volume into the $3.40 top and closes under $3.16 suggest buyers didn’t have enough conviction on the next move higher. The hope for the bulls is closing above the previous swing top at $2.90. Support under here is approx $2.30-$2.50.

— Jason Pizzino (@jasonpizzino) January 27, 2025

Despite the recent downturn, most analysts remain bullish on XRP’s long-term potential. Rob Art says XRP broke out of a 7-year-long triangle recently and will soon resume its rally, but only after it shakes out all the emotional buyers and sellers. After that, it will “turbo-send” XRP higher.

Crypto Bitlord shares a similar opinion, indicating that XRP will “experience a vertical style black swan.”

I’m convinced that $XRP will experience a vertical style black swan.

The price will go straight upwards with no warning.

It will go so high nobody could have ever predicted it.

All shorts will cease to exist from that day.

The world will change and bitcoin will be flipped.

— Crypto Bitlord (@crypto_bitlord7) January 26, 2025

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2025-01-27 10:58