Ripple (XRP) Price Prediction: Can XRP Keep Going After Witnessing Strong Price Rejection?

Ripple (XRP) price has been bleeding for the past four days and has melted to the $1.8 mark. However, buyers have bounced back and have lifted the price

Ripple (XRP) price has seen a rough four days, bleeding down to the $1.8 mark before buyers finally bounced back, lifting the price by 37% in a matter of hours.

In January, XRP price remained bullish, attempting to hold the $3 mark but failing to do so. According to XRP price prediction, Ripple is available at a discount, presenting a ‘buy the dip’ scenario.

The sell-off reflects broader crypto market declines amid trade tensions in the U.S., with Dogecoin (DOGE) dropping 15% to $0.27 and Bitcoin (BTC) falling 6.8% to $94,290.

Whether this is a short-lived correction or a more substantial bearish shift is up for debate among analysts.

Crypto Market Crash Amid Trade Wars and Technical Breakdowns

Global markets reacted to President Donald Trump's announcement on February 1 of new tariffs on China, Canada, and Mexico, set to take effect on February 4, 2025.

Cryptocurrencies quickly responded, with Bitcoin and Ethereum plumeting sharply. On February 4, XRP’s market cap slid to $150 Billion, and it hit an intraday low of $2.51, according to CoinMarketCap.

Timothy Sykes, an analyst, attributed the sell-off to concerns about a “wrecked” U.S. stock market and weekend trading volatility. DonAlt, a pseudonymous trader, warned on Monday of further selling pressure.

Days before the crash, on January 28, The Coin Republic’s cutting-edge AI analytics platform XRP price prediction warned of a possible decline for XRP amid the panic.

Having been trained on historical price patterns, on-chain data, and macroeconomic indicators, the AI model detected waning momentum near XRP’s $3.20 resistance level.

“XRP’s 14-day RSI at 78 indicates overbought conditions,” the AI’s previous report stated, adding that a likely retracement to $2.50–$2.90 could be expected.

As predicted, XRP reached lows of $2.12 on February 4. The AI now suggests that if this support holds, consolidation around $2.50 could precede a recovery.

XRP Price Witnessed Strong Price Rejection: Can it Keep Going?

At press time, XRP was trading at $2.4, down by 15.68% intraday. Its market value stood around $140.36 Billion, and the 24-hour trading volume was $34.42 Billion.

From the technical chart, the XRP/USD price grabbed liquidity below the $2 level. But, it bounced back after the liquidity grab and surged by 36% in a few hours.

If the XRP crypto price recovers from the recent fall and manages to hold above the $2.6 mark, it would be a bullish sign.

Apparently, liquidity has been grabbed, which might be attracting traders. Here, traders’ involvement could pump the XRP price and a bullish momentum may be anticipated.

On the other hand, if the Ripple crypto price fails to defend the $2.00 mark, recently participated buyers might lose confidence.

On a higher time frame, the price of Ripple has performed very well. In this case, long-term holders might prefer to book profits, which could lead to a continuous sell-off ahead.

This article is intended for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article bear no responsibility for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions.

Varuni has been in the web3 space for half a decade, witnessing the changing dynamics of DLT, Blockchain and Web3. With 8 years of journalistic expertise, she has a keen interest in emerging technology and their impact on society. She has published news and on-chain analysis articles on Nasdaq as well as some of the top web3, crypto news firms. Currently, she heads The Coin Republic as the Editor-In-Chief.