XRP, one of the most well-known cryptocurrencies in the market and a vital part of the Ripple blockchain, is facing growing concerns about its future price trajectory. According to popular crypto analyst EGRAG Crypto, XRP may be on the verge of a significant crash — one that could see its value plummet by as much as 74%. These alarming predictions come amid growing bearish momentum in the broader cryptocurrency market, as well as troubling indicators surrounding XRP’s funding rates.
In recent weeks, XRP has experienced a noticeable decline in its price, dropping by 5% over the course of just one week. However, the real worry for investors is the potential for even more severe losses in the coming months.
Historical Patterns Point to Significant Risk
EGRAG Crypto’s analysis points to recurring price patterns in XRP’s past, warning that history may be about to repeat itself. According to the analyst, every time XRP has reached a particular point in its price cycle, referred to as “Fork C,” it has experienced steep declines ranging from 64% to 90%. Given this historical trend, EGRAG is forecasting an average drop of around 74%. If this prediction proves accurate, XRP could soon tumble to as low as $1.
This potential price drop would mark a critical point for the cryptocurrency, as this price level has historically been a major support barrier. Over the years, XRP has struggled when it has fallen to similar levels. In fact, during previous market corrections, such as those in December 2015, May 2017, September 2018, and April 2021, XRP saw average drops of about 74%. If the same pattern holds, investors could be in for another rough ride.
Can XRP Avoid the Downturn? The $4 Barrier
While the outlook for XRP looks uncertain in the short term, there is still a glimmer of hope for investors who believe in the cryptocurrency’s long-term potential. EGRAG Crypto believes that XRP can avoid a catastrophic decline — but only if it manages to break past a critical resistance level. Specifically, the analyst notes that XRP must close above $4 on the weekly chart, with strong confirmation, before March 10, 2025.
If XRP fails to meet this key price point, it could trigger another significant downturn, leading to a sharp price drop that may mirror previous crashes. This makes the next few months incredibly important for XRP holders and anyone with an interest in the digital currency.
EGRAG also highlights the upcoming lunar eclipse on March 14, which is expected to bring increased volatility to the market. Historically, lunar eclipses have been tied to market fluctuations and price corrections, adding more urgency to the situation. This suggests that XRP’s price movements will be under intense scrutiny as this deadline approaches.
Funding Rates Add to the Pressure
Adding to the pressure is XRP’s negative funding rate, a key indicator that signals investor sentiment. A funding rate turning negative suggests that a larger number of traders are betting against XRP’s price, which is a bearish signal. This kind of sentiment makes it more difficult for XRP to maintain upward momentum, further complicating the outlook for the cryptocurrency.
When funding rates are negative, it can indicate that traders expect further declines in price. This can lead to more selling pressure, driving the price down even further and potentially causing a chain reaction of sell-offs.
XRP’s Long-Term Potential Remains Strong
Despite the looming risks in the short term, EGRAG Crypto maintains a bullish outlook for XRP in the long run. If XRP can manage to break through the critical $4 resistance level, it could set the stage for a much-needed rally, with potential price targets ranging from $13 to $15. This would be a significant leap from its current price, and a move many XRP enthusiasts are hoping for.
The analyst believes that XRP’s long-term fundamentals remain strong, with the cryptocurrency continuing to play a crucial role in the world of cross-border payments and blockchain technology. If XRP can weather the storm in the coming months, it could ultimately set the stage for a much brighter future.
What’s Next for XRP?
As the cryptocurrency market continues to evolve, XRP investors are facing a critical period. The coming months will determine whether XRP can maintain its position or face a substantial downturn. Key levels to watch include the $1 support level, which has historically been a major point of resistance, and the $4 resistance level, which will be crucial for preventing further declines.
In addition to technical factors, market sentiment will play a large role in shaping XRP’s future. With funding rates turning negative and broader market trends suggesting potential instability, there’s a lot of uncertainty surrounding the cryptocurrency.
Still, for those with a long-term outlook, XRP may be a cryptocurrency worth keeping an eye on. If the price can break past the $4 resistance level, the possibility of a strong rally toward $13-$15 could make it an attractive investment. However, for those looking to avoid short-term risk, caution remains advisable.
In the ever-changing world of cryptocurrencies, no one can predict the future with certainty. But XRP’s price movements in the coming months will certainly be worth watching as the market navigates its next big challenge. Whether XRP will rise or fall remains to be seen, but the stakes for its future have never been higher.
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