XRP Price Rollercoaster: Analyst Predicts Where the Bottom Lies Before a Bounce
Amidst recent price volatility that has stirred concerns among crypto traders, XRP has faced significant speculation regarding its potential to drop below the crucial $2 support zone. Prominent crypto analyst Zach Rector has weighed in, offering a detailed perspective on XRP's realistic downside trajectory and the likelihood of a return to the $1 mark, dismissing such a dramatic fall under current market conditions.
Zach Rector Dispels $1 XRP Scenario
Zach Rector, a respected voice in XRP analysis, firmly believes that a drop to $1 for XRP is "virtually impossible" within a normal market environment. He highlights that while there's significant demand from Spot XRP Exchange-Traded Funds (ETFs), this is currently counterbalanced by selling pressure originating from centralized exchanges. This dynamic has, so far, kept XRP's price range-bound and consistently above the $2 threshold. Rector asserts that the existing market structure, considerable liquidity depth, and prevailing buyer behavior do not support such an extreme decline. The XRP order book, he notes, is robustly populated with limit orders from passive buyers positioned well above the $1 level, reinforcing a higher long-term floor.
Identifying Realistic Support and a Potential Rebound
Rector, who personally holds a long XRP position, revealed his strategy of dollar-cost averaging, bringing his entry down to approximately $2.23. Based on his analysis, he pinpoints a specific price low to watch for before XRP can be expected to stage a rebound. He draws attention to historical data from Coinbase charts, which reveal a consistent pattern of higher lows for XRP – notably bottoming near $1.60 in April, recovering to form a higher low around $1.77 in October, and then holding above $1.81 in November. This pattern suggests a strengthening foundation rather than a collapse. Consequently, Rector identifies the $1.90 to $1.80 range as the most probable downside scenario should selling pressure intensify and XRP break below the $2 level. A temporary dip below $1.90 to test $1.80, he concludes, would still align with the broader "higher-low" structure that has characterized XRP's price action throughout the year, setting the stage for a potential bounce.
