XRP Price Prediction: Fall Toward $1 is Close

XRP's price, down 18% in the last 30 days, is unlikely to experience a quick rebound. This development comes as the altcoin continues to face selling pressure.

Key Takeaways:

* XRP’s price, down 18% in the last 30 days, is unlikely to experience a quick rebound. This development comes as the altcoin continues to face selling pressure.

* In January, XRP attempted to notch a new all-time high after its explosive move from early November. However, that attempt was unsuccessful, and the token is likely to decline below $2.

* If the sell-offs continue, XRP’s price will likely drop below $2.

(Image Credit: Benzinga)

After reaching a high of over $2 in January, fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl fl flcoins such as XRP have struggled to capitalize on the recent rally in the market.

Over the past month, major cryptocurrencies like Bitcoin and Ethereum have encountered resistance at crucial levels, leading to a slight pullback. However, this selling pressure has pushed altcoins deeper into bearish territory.

As a result, several altcoins have seen their prices drop by double digits in the last 30 days. One such token is XRP, which has seen its value decrease by 18%.

While a slight recovery in the market could help to quickly erase some of the recent bear market gains, a major price recovery for XRP seems unlikely at the moment.

Here’s why.

XRP Whales Continue To Sell As Open Interest Drops

On April 3, the number of XRP held by addresses that own over 1 billion tokens was 24.73 billion. Today, it has dropped to 24.63 billion, meaning that large holders have let go of 100 million tokens within the last 24 hours.

At the altcoin’s current price, this figure amounts to $200 million. Usually, when these key stakeholders accumulate, the price rises afterward. Conversely, a decline in whale holdings is a negative sign.

Thus, if the sell-offs continue, XRP’s price will likely drop below $2.

In addition, Open Interest (OI) has also dropped. The OI represents the sum of all open contracts in the derivatives market. High OI indicates strong market participation.

In January, XRP’s Open Interest was over $3 billion. However, at press time, it stands at $1.3 billion.

From a trading standpoint, the decline in OI indicates an increase in the closure of existing XRP positions, which is typically a bearish sign.

Therefore, if XRP’s price continues to slide alongside the OI, the token’s value might fail to retest $3.

XRP Price Analysis: Fall Toward $1 Is Close

The Moving Average Convergence Divergence (MACD) reading on the daily XRP/USD chart has dropped, indicating bearish momentum. If sustained, XRP’s price might not be able to erase a major part of its double-digit decline.

In addition, XRP’s price has formed a head and shoulders pattern on the daily chart. A head-and-shoulders pattern is also a trend reversal formation.

It is formed by a peak (the left shoulder), followed by a higher peak (the head), and then another lower peak (the right shoulder), indicating a potential shift from a bullish trend to a bearish one.

From the chart above, XRP’s price is on the verge of breaking below the neckline at $2.02. If validated, the token might decline to the 0.382 Fibonacci level at $1.60.

Should demand for the cryptocurrency continue to decline, XRP’s price might fall to $1.17.

Alternatively, if buying pressure increases and XRP does not break below the neckline of the bearish pattern, this forecast might not happen. In that case, XRP’s price could climb to $2.78 and rise as high as $3.