Amid the persistent downturn in the broader crypto market, XRP is under scrutiny as it continues to slide, prompting a leading crypto analyst, Egrag, to reevaluate its potential, possibly dropping to $0.10.
XRP grapples with the aftermath of a recent market crash that eroded billions in value. It trades at approximately $0.4781, marking a significant decline of over 48% from its yearly peak of $0.93, observed in July.
This decline has raised concerns among investors, leaving them pondering whether XRP can stage a comeback or if its descent will persist. In the midst of this uncertainty, the Crypto Analyst Egrag has examined the possibility of XRP plummeting to $0.10, a level not seen since 2017, and recently shared his perspective on this matter.
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EGRAG’s Initial Considerations
EGRAG revisited a conversation from April 23, which led him to reevaluate XRP’s outlook and prepare for a worst-case scenario. Before diving into the analysis, he made a few important points clear.
First and foremost, he reiterated his unwavering commitment to XRP, making it known that he would not part with his XRP holdings until they reached his set targets, one of them being $27 during the next bull run. This commitment aligns with the views of many XRP investors who regard the asset as a long-term investment.
EGRAG presented his analysis as a mental exercise to prepare oneself for potential market turbulence. While maintaining his bullish stance on XRP, he temporarily adopted a bearish perspective to explore the downside.
He acknowledged the unpredictability of the market, likening it to a rollercoaster ride. EGRAG further likened XRP to a bank account with the potential for substantial returns.
Related also: XRP Whales Amass 1.5 Billion Tokens: Boost Holdings to 26.8% of Supply
Technical Assessment of XRP
Next, EGRAG delved into the technical aspects to evaluate XRP’s potential to drop to $0.10. He pointed out that XRP has adhered to a significant multi-year channel since its inception, suggesting a degree of price stability.
Additionally, he highlighted the noteworthy Fibonacci level at $0.40, which had served as a robust monthly support. EGRAG noted that as long as XRP maintains this support, envisioning a bearish scenario becomes challenging for him.
Considering Fibonacci targets and crucial technical indicators, EGRAG contemplated the possibility of XRP dropping to $0.10 with an open mind. He acknowledged that such a drastic decline is improbable unless a black swan event occurs.
EGRAG speculated that in the event of a price crash, traditional financial institutions like banks and hedge funds might exploit the opportunity to deliberately drive down XRP’s price and acquire it at a discounted rate.
In the short term, XRP remains within the grip of bearish forces, trading at $0.4810, with a consistent downtrend over the past five days. This ongoing bearish pressure has compounded the selling pressure, contributing to XRP’s decline.
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