XRP Price Prediction: Is This Just the Beginning of a Bigger Crash?

XRP is in the hot seat right now, and not in a good way. 🔥 Over the past 24 hours, the token has taken a sharp nosedive, losing 4.5% of its value. Even worse, it's been underperforming most of the top-10 cryptos over the past week. 😬

XRP price continues to decline, showing weakness and sparking concerns about a potential drop below the crucial $2 support level. Despite a brief recovery attempt, XRP is trading at a loss of 4.5% over the past 24 hours.

But wait, there’s more! XRP has also been lagging behind most top-10 cryptos over the past week, adding fuel to the bearish narrative.

Now, let’s dive into the factors dragging XRP down.

Futures Bleed Open interest in the XRP futures market has taken a massive hit, decreasing by over 54% in just three weeks and wiping out more than $2 billion in positions. But here’s the kicker: funding rates just turned negative for the first time in months. This usually indicates that traders are expecting more downside.

Spot investors don't seem to be interested in buying the dip. Data from CryptoQuant shows that XRP reserves on Binance have remained flat this week following a major sell-off in mid-December. This suggests that investors are hesitant to buy XRP at current levels, fearing another round of profit-taking.

The holiday season brought more than just eggnog and fireworks - it also brought a massive slowdown in spot trading volumes. With bulls taking a break, XRP price is at the mercy of the dominant bearish trend.

Technically, XRP is showing signs of weakness. The altcoin has broken out of its symmetrical triangle pattern on the daily chart, but not in a good way. This move could drag prices into a liquidity zone between $1.80 and $1.95.

On the 4-hour chart, XRP just dipped below the critical 200-day EMA once again. Last time this happened in November, bulls staged a quick recovery. But this time? Not so much.

Crypto analyst @DomCrypto summed it up best:

“XRP price action is incredibly weak right now. If we lose the $2 mark, $1.90 is the next target. Let me be wrong, but I'm bracing for another leg down.”

Currently, XRP is trading at around $2.07, where there's very little liquidity to support it. If bulls can't step in fast, we might see it tumble toward $1.90.

But let's not forget - Bitcoin is also looking shaky. If BTC dips further, it could drag XRP and the rest of the market down with it.