XRP (XRP) Price Prediction 2023: Can XRP Drop as Low as $1.50?

Cryptocurrency XRP has experienced a substantial decline of 22.25% over the last month, after reaching its highest point since January 2018 at $2.90. The token now trades around $2.34, and some analysts are predicting the potential for a 40% drop. Here’s a breakdown of the key factors contributing to XRP's downward spiral and what the future might hold for the token.

Several factors are playing a role in XRP's recent price drop:

1. Bearish Crossover: XRP’s 50-day moving average has crossed below its 200-day moving average, forming a Death Cross technical pattern. This formation is typically viewed as a bearish signal, indicating a downtrend in the asset's price.

2. Weak Momentum: The Relative Strength Index (RSI) for XRP has been trending lower, suggesting that the bullish momentum behind the token's recent rally is weakening. As the RSI approaches oversold territory, it could indicate a potential reversal in the downtrend.

3. Symmetrical Triangle Forms: Could XRP Drop 40%?

XRP’s current chart shows a symmetrical triangle pattern, a technical formation that could indicate a strong price move in either direction. If the lower trendline breaks, XRP could drop 40% from its current price, bringing it down to around $1.50. However, a breakout above the upper trendline could lead to a 60% gain, pushing XRP up to $3.80.

4. Selling Pressure from Large Holders

XRP is also facing additional bearish pressure due to the actions of its largest holders. According to Messari, addresses holding at least 1 million XRP tokens have reduced their holdings to a new low of 90.5 billion XRP, compared to 100 billion XRP last year. This shift indicates that whale investors may be taking profits or anticipating further downside.

5. Key Levels to Watch:

XRP is currently at a critical juncture, with its price poised to either break downward toward $1.50 or rebound toward $3. Market conditions, whale actions, and upcoming technical indicators will likely determine which direction XRP takes in the near future.

XRP has been consolidating within a price range of $1.98 – $3.03 on the weekly chart, with key support and resistance levels situated at Fibonacci retracement points. As of January s10, XRP has bounced off the $1.98 support level, but its upside momentum seems to have stalled.