XRP has recently reversed its upward move, returning back to the red territory amid the broad crypto market slowdown.
Following this negative price trend, XRP is at risk of losing the crucial $2 support level, posing the asset for a deeper decline that could see XRP retest levels not seen in months, according to recent data shared by popular crypto analyst Ali Martinez.
XRP risks retesting $1.20
Following XRP’s indecisive move, the analyst has warned that the leading altcoin could face a heavy price correction that could trigger a massive decline to $1.20 if it fails to hold support about $2.
Ali issued the warning following the recent price weakness that has seen XRP steadily face multiple corrections after failing to reclaim key resistance levels since the massive crash witnessed Oct. 10.
Furthermore, the analyst shared a chart revealing that XRP has formed a major support at $2, this marks the level where buyers have repeatedly stepped in to prevent deeper losses.
While the chart further revealed XRP’s latest price action, which saw the asset consolidating just above the $2 level, it has raised concerns that selling pressure may be building.
As such, if XRP fails to hold momentum and break the $2 support, it could trigger a massive price decline of about 40%, retesting $1.20 again.
While XRP is showing no signs of a rapid resurgence soon, it appears that the asset may defy the bullish December trends witnessed in the past two years. Currently, the asset has recorded a nearly 6% decline for the month.
Nonetheless, the analyst further revealed that there is a chance of saving the situation, noting that a successful defense of the $2 zone could allow XRP to stabilize and attempt a recovery toward the $2.40-$2.60 range.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team