Daniel Walker
XRP has shown signs of a minor recovery today as the broader crypto market remains in the green. However, experts are still cautious about a full recovery, suggesting that the token could experience a sharp drop to $1.4 or even $1.3 before bouncing back and potentially reaching higher price targets. Despite these warnings, many analysts remain optimistic about XRPโs long-term prospects.
Today, XRP price gained over 1%, trading at $2.09, with its trading volume decreasing by 6% to $3 billion. It reached a 24-hour high of $2.12 and a low of $2.06, while its Futures Open Interest increased by 0.5%, reaching $3.09 billion.
Analysts Predict Possible Dip to $1.4 Before Recovery
Despite the slight recovery, market analysts are not convinced that the rally will continue. Several experts predict that XRP could still experience a significant pullback to $1.4 or lower before gaining momentum again. A major factor influencing investor sentiment is the ongoing Ripple vs. SEC legal case, which has led many traders to remain cautious.
Warning: A Potential Liquidation Event
Crypto analyst EGRAG CRYPTO recently expressed concerns about XRPโs short-term price movement, stating that unless the token closes above the $2.30โ$2.50 range on the 5-day chart, a retest of $1.85 is likely. EGRAG further warned that XRP could face a liquidation event that could temporarily push the price down to $1.4. He suggested that such sharp declines are often triggered by surprise news, orchestrated by market makers to induce volatility.
Drawing from past incidents, EGRAG highlighted how events like Chinaโs mining bans or tariff announcements have historically manipulated market sentiment. Although he is not actively trading XRP at the moment, he emphasized that he is accumulating the token at predetermined levels and remains confident about XRPโs long-term potential, with targets set at $7.50, $13, and even $27.
XRPโs Vulnerability to Market Volatility
EGRAGโs perspective indicates that XRPโs price could be susceptible to sudden, news-driven fluctuations. Recently, the launch of the XRP ETF in the U.S. fueled positive market sentiment, with some experts predicting that Ripple could see a price surge to $15 due to expected ETF inflows.
However, according to EGRAG, these price swings are not always based on fundamental changes. Rather, they are often a result of market tactics used by major players to shake out weaker investors. He pointed out that events like tariff announcements can lead to abrupt market movements, emphasizing the increasing influence of non-technical factors on crypto prices.
XRP Price Could Fall to $1.29 Before Rallying
Echoing a similar bearish outlook, analyst Ali Martinez suggested that XRP might dip to $1.29 before experiencing a price rebound. Martinez referred to well-known chart expert Thomas Bulkowski, who noted that such pullbacks are a natural part of market behavior, designed to keep traders engaged and on edge.
Martinez explained that these types of dips are typical in the crypto market, designed to make trading more interesting. As a result, both analysts predict a potential price decline to the $1.4-$1.29 range. Despite these short-term risks, they remain confident about XRPโs long-term trajectory and potential.
