XRP Risks 43% Drop if Key Support Fails
Key Takeaways
Ripple (XRP) may be facing a significant price decline. Renowned analyst Peter Brandt warns of a possible 43% drop if the price falls below $1.90. On-chain data partially supports this assessment but also shows signs of potential stabilization.
Peter Brandt’s Analysis: Is a Price Drop Imminent?
According to Brandt, XRP is forming a classic “Head-and-Shoulders” (H&S) pattern. This chart formation is considered a bearish signal if the price falls below the neckline. If XRP drops below $1.90, Brandt suggests the price could fall to $1.07.
On-Chain Data: Weakness or Stability?
A look at on-chain data reveals mixed signals:
- The number of active addresses on the XRP Ledger has dropped by 62% since December – from 74,000 to 28,000 users.
- The MVRV Z-Score, an indicator of overvaluation or undervaluation, was above 6 in December and now stands at 2.8. A high value suggests that many investors are in profit and might sell.
- At the same time, XRP tokens worth $290 million were withdrawn from exchanges in March. This could indicate long-term accumulation.
Technical Analysis: Key Support Levels
From a technical perspective, there are two crucial support levels:
- The $2.00 level serves as the first major support.
- If the price declines further, the next support could be at $1.40.
- On a positive note, the price is still above the 200-day moving average, which keeps the bullish market structure intact for now.
Our Assessment
XRP is in a critical phase. While some indicators suggest a potential correction, other data shows that investors are still holding onto XRP. If the price falls below $1.90, a further decline could follow. However, as long as XRP remains above the 200-day moving average, there is still a chance for stabilization.
| Symbol | XRP |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $2.13 |
| 24h % | 0.10 % |
| 7d % | -11.30 % |
| 30d % | 4.46 % |
| 60d % | -30.45 % |
| 1y % | 240.41 % |
| Official Links | Website |
| Socials | X |
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