- XRP Nears Critical Breakdown: After a 23.23% drop this week, XRP is hovering near the $2 mark, with further declines possible if support fails.
- Bearish Targets at $1.96 and $1.57: Analyst Arina Karayi identifies $1.96 as the next key support, with a worst-case scenario at $1.57, marking a 54% drop from its yearly peak.
- Potential Bullish Reprieve if BTC Dominance Falls: A decline in Bitcoin’s 60.84% dominance could shift liquidity into altcoins, giving XRP a chance to stabilize and invalidate the bearish outlook.
A market analyst has outlined three potential downside targets for XRP, as the broader crypto market downturn intensifies.
For context, Bitcoin ($BTC) tumbled below $80,000 for the first time since November, dragging the entire market with it. BTC is down 16.48% this week, and XRP hasn’t been spared, sinking 23.23% over the same period.
This morning, XRP shed another 7.5%, bringing it dangerously close to dropping below $2—a critical level that bulls are struggling to defend.
Temporary Relief, or Just a Pause Before More Pain?
At this pivotal moment, market analyst Arina Karayi has mapped out three bearish targets for XRP in a TradingView analysis. Interestingly, the first bearish target, $2.23, has already been breached, with the bears decisively reclaiming this level on Feb. 26.
Karayi notes that a short-term recovery could be on the horizon, with a potential bounce pushing XRP back above $2.5085. This prediction is based on historical patterns, where XRP has seen brief rallies before resuming its downtrend.
However, the relief might not last long. If XRP climbs to the upper trendline of its descending channel, Karayi expects a rejection at $2.6, leading to another leg down.
source: tradingview
Bearish Targets Loom—Where Could XRP Land?
Should sellers regain control, two more bearish targets come into play:
- First major support at $1.96—falling below $2 would shift sentiment further bearish.
- A deeper drop to $1.57, a level last seen in November 2024, marking a 22% slide from current levels.
If XRP were to reach $1.57, that would represent a 54% crash from its yearly peak of $3.40.
Can the Bulls Avoid a Breakdown?
Karayi acknowledges that this bearish outlook could be invalidated if Bitcoin’s dominance declines. Currently sitting at 60.84%, BTC’s dominance has been rising, further pressuring altcoins like XRP.
A reversal in BTC dominance could shift liquidity into altcoins, potentially giving XRP a chance to stabilize. Until then, traders should keep an eye on key support levels, as the next few days could determine XRP’s short-term fate.
