XRP, the native cryptocurrency of Ripple, is currently facing a grim forecast, with market analyst The Block Bull predicting a sharp decline to as low as $1.50 or even $0.50 in the near future. This pessimistic outlook follows the cryptocurrency’s failure to break out of its consolidation phase and the broader uncertainty in the digital asset market, largely influenced by Bitcoin’s fluctuating price around the $100,000 mark.

XRP experienced a significant surge earlier this month, reaching a seven-year high of $2.90 on December 3 after a remarkable 105% rally in just eight days. However, this rally quickly encountered resistance, leading to a rapid pullback. While XRP has managed to recover somewhat, it has failed to retest its peak and is now trading between $2.00 and $2.50, occasionally dipping below the $2 mark. The Block Bull believes this period of consolidation could signal the beginning of a more substantial downtrend.

The Likelihood of an Immediate Decline

According to The Block Bull, XRP’s decline could begin imminently. After closing the day with a 2.34% drop on December 12, breaking its recent upward momentum, XRP showed signs of slight recovery but remained flat by the morning of December 13. The analyst predicts that this could be the start of a more significant downtrend, with XRP potentially falling to $1.50 within the next week. This level has not been tested since November 29, and should it break, a further decline to $0.50 could occur between Christmas and New Year’s.

The analyst points out that XRP spent a significant portion of 2022 and 2023 battling the $0.50 resistance level before finally overcoming it in November 2024. Therefore, a return to these levels would represent a major setback, signaling a sharp reversal in the market sentiment for XRP.

Support Levels to Watch

One of the key support levels to watch for XRP is the $2.20 mark. The Block Bull emphasizes that if XRP falls below this crucial level, it could rapidly slide toward $1.50. Beyond that, the next potential support would be weak, as the market analyst warns of limited support at the $1.50 mark. If XRP fails to hold that, a dramatic plunge to $0.50 could be imminent.

At the time of writing, XRP is trading at around $2.34, hovering just above the $2.20 support zone. A failure to maintain this level could result in a steep 35% drop to $1.50, and a subsequent fall to $0.50 would represent a staggering 79% decline.

Comparing XRP’s Current Pattern to 2017

The Block Bull’s analysis of XRP’s price movements draws comparisons to the 2017 bull market. In March 2017, XRP surged by 284%, only to experience a 44% correction in early April before eventually rebounding to hit an all-time high of $3.30. The analyst suggests that XRP may follow a similar trajectory, with an initial drop followed by a recovery, but the timing and magnitude of such a rebound remain uncertain.

XRP Community’s Optimism Remains Strong

Despite the bearish predictions, XRP supporters remain optimistic about the coin’s long-term prospects. Factors such as the growth of Ripple’s ecosystem, increasing institutional interest, and the broader market sentiment are contributing to the continued confidence in XRP. Furthermore, some are hopeful that future regulatory clarity, along with potential shifts in political leadership under the upcoming Donald Trump administration, could provide additional momentum for the asset.

As XRP navigates these uncertain waters, all eyes are on its price action over the next few weeks. Whether it can hold key support levels or face a deeper correction will likely set the tone for its performance in 2025.