Making precise forecasts for a decline in XRP price is difficult, as cryptocurrencies are heavily influenced by external factors, including market sentiment, macroeconomics, news, and trading volume. However, certain conditions may lead to a decrease in value:
Possible reasons for the decline in XRP price:
1. Negative news:
Regulatory restrictions, especially if Ripple faces legal issues again.
Decreased investor confidence due to scandals or unmet expectations from Ripple.
2. Correction after growth:
A rapid rise to $1.91 may lead to profit-taking by large investors, causing a pullback.
3. Overall deterioration in the market:
If the cryptocurrency market starts to decline (for example, due to interest rate hikes by the Fed or capital moving into less risky assets), XRP may follow the overall trend.
4. Increase in supply on exchanges:
If large holders of XRP start selling it, this will increase liquidity and create pressure on the price.
How to track price declines:
Technical analysis: Watch for support levels. If the price breaks through key zones, such as $1.75 and $1.50, it may signal further declines.
Fundamental factors: Read news about Ripple, regulatory bodies, and partnership programs.
Trading volume: A sharp increase in volumes may signal the start of sell-offs.
What a trader should do:
Set stop-loss levels to protect capital.
Be prepared for high volatility and consider buying during corrections if the long-term trend remains bullish.
Current data suggests that a sharp decline is unlikely in the short term, but high volatility requires caution.