XRP's Precarious Position: Analyst Warns of Further Decline to $2.6 or $2 Amidst Price Dip Ripple's XRP token has experienced a notable slide, dipping over 5% and raising alarms among investors. A prominent analyst, Ali Martinez, has drawn attention to critical technical patterns that suggest the cryptocurrency could be poised for even lower price points if it fails to regain key support levels.
Technical Indicators Point to Potential Downside
Analyst Ali Martinez recently utilized X (formerly Twitter) to highlight a persistent "Parallel Channel" pattern that XRP has adhered to since late last year. This technical analysis formation is characterized by an asset's price consolidating between two parallel trendlines, where the upper boundary acts as resistance and the lower as support. XRP's previous attempts to break out of this channel, both in April and last month, proved short-lived, with the price quickly reverting. This behavior underscores a strong resistance around the $3.3 level.
Key Support Levels Under Threat
XRP's repeated failure to decisively reclaim the $3.3 mark has placed it in a vulnerable position. Martinez's latest analysis indicates that XRP has now fallen below another significant support level at $3. From this technical perspective, the analyst projects potential further declines, targeting $2.6, which aligns with the channel's midway line, or even a more substantial drop to $2, representing its lower boundary. Complementing this, on-chain data reveals a substantial accumulation of approximately 1.7 million XRP tokens by investors around the $2.81 price point. This dense concentration of supply could function as a crucial support area, as profit-holding investors often strategically increase their positions during dips to their average cost basis, perceiving it as a buying opportunity. At the time of writing, XRP is trading at approximately $2.99, reflecting a decline of over 6% in the last week.
