XRP Faces Potential for Sharp Drop: Will It Test $1.50?

●Symmetrical Triangle Hints at 40% Correction

XRP has tumbled 22.25% in the past month, slipping from its January 2018 peak of $2.90 to $2.26 as of January 10. Profit-booking, robust U.S. economic indicators, and a hawkish Federal Reserve have weighed heavily on the token's price.

A symmetrical triangle on XRP's daily chart suggests a volatile breakout is imminent. Currently hovering near the upper boundary of the triangle, XRP risks sliding to $2.05 (its 50-day EMA). A decisive breakdown below the lower boundary could push prices to $1.36 by February, representing a 40% plunge.

On the upside, a breakout above the upper trendline could propel XRP to $3.46. However, bearish sentiment persists, with large holders trimming their positions. Notably, wallets holding over 1 million XRP have reduced their holdings to 90.50 billion tokens—a significant drop from last year’s 100 billion.

●Will XRP Fall to $1.50?

On the weekly timeframe, XRP continues to oscillate between $1.98 and $3.03, corresponding to critical Fibonacci levels. After rebounding from $1.98 support, its upward momentum has softened, with the token shedding 4% this week. The RSI remains overbought, signaling further downside risks.

If bears take control, XRP could retest $1.98 support. A breach at this level may pave the way for a dip to $1.50, close to the 20-week EMA and near the 0.786 Fibonacci retracement level at $1.62.

Alternatively, holding the $1.98 support could drive a recovery toward $3, with bullish traders projecting gains if momentum strengthens.

Analyst Valeriya suggests, "The $2.15–$2.20 range is pivotal. Sustaining this zone may trigger a rally to $2.91. A break below it, however, could open the door to sub-$2 prices."

$XRP

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