Key Insights
- Analyst EGRAG CRYPTO recently predicted XRP could hit $27 before crashing to $0.80 in the next bear market.
- Despite a recent rally, technical patterns show signs of a possible sharp correction.
- The SEC lawsuit settlement and XRP ETF hype continue to fuel investor interest.
Recent XRP news indicates that Ripple has been one of the year’s best-performing assets. Considering the encouraging developments around the SEC-Ripple legal battle, investor confidence has soared.
As a result, XRP price has surged to multi-year highs. The token recently touched $3.65 before the ongoing correction. However, not everyone is convinced the good times will last.
XRP News: Analyst Sees XRP Crashing After Reaching New Highs
According to XRP news from crypto analyst EGRAG Crypto, some interesting developments are occurring on XRP’s charts. He pointed out two scenarios for the cryptocurrency. In one, he sees XRP price soaring to $27.
This pump, however, would then be followed by a bitter 97% drop to $0.80. He refers to this as a “cycle repeat,” and compares it to what happened in the 2017-2018 bull-bear cycle.
“If we anticipate a $27 cycle and experience a similar 97% drop, XRP’s next bear market target could be around $0.80,” he warned.
The analyst considers a more moderate peak of $9 in a second scenario. However, similar to the first scenario, XRP would follow this with an 85% decline to around $1.30.
This prediction is based on a symmetrical triangle pattern in XRP’s long-term chart. Despite the pessimism, EGRAG noted that veteran crypto holders might see such price drops as buying opportunities.
“What goes up must come down, but the question is: how far down?” he added.
Short-Term XRP Remains Positive
XRP news indicated that the token has enjoyed strong bullish standing over the last few months. This happened despite the incoming bear market fears.
After breaking out of a 7-month consolidation range, XRP reached $3.65 before reversing to test support at nearly $3.00.
Meanwhile, CoinGecko data showed that XRP price is up 49.1% this month and 438.7% year-over-year. This is despite a slight dip of 8.6% over the past week.
At the time of writing, XRP is trading at $3.16, showing a 3.78% daily decline. Interestingly, this price drop came with a spike in volume.
Daily trading surged 8.81%, towards $7 billion. This indicates either profit-taking or portfolio adjustments by traders preparing for XRP’s next move.
XRP ETF Buzz Adds to Investor Optimism
Another top development in XRP news is the buzz around a possible spot XRP ETF in the US. Since resolving the SEC lawsuit, Ripple has cleared one of the most significant regulatory hurdles.
Analysts believe a spot XRP ETF could launch as early as this year. Also, Bloomberg’s Eric Balchunas noted that the SEC may soon issue standard listing rules for crypto ETFs. He says these would pave the way for products like an XRP ETF.
In addition, Polymarket places the odds of approval in 2025 at 85%. It is a strong signal of market confidence.
XRP News & Macro Trends Point to a Potential Price Rebound
Apart from technicals and ETFs, the general market trends support an XRP comeback. For example, Bitcoin has been leading the crypto market this year. Also, other cryptocurrencies (like XRP) show a strong correlation.
Companies are raking in billions of cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP. As such, XRP news suggested it is unlikely to crash harshly soon.
In addition, the Federal Reserve began cutting rates at the end of last year. Traders expect up to four more cuts before the end of the coming year. If bond yields continue to decline, risk-taking could increase and support higher prices for assets like XRP.
Traders should watch support and resistance levels because a bounce from $3 could push the XRP price to $4.60. On the other hand, a breakdown could lead to a fall toward $2.50.