Is XRP price going to crash again?

XRP (XRP) price has dropped from its high of $2.83, reached on Feb. 15, losing a key support level. This has left market participants wondering whether XRP’s price could drop further in the coming days.

XRP price needs to reclaim the 50 SMA

The latest drop in XRP price saw the altcoin notably breach the 50-day simple moving average (SMA) for the second time in less than two weeks.

Why it matters:

On Feb. 2, XRP dropped from a high of $2.95, sliding below the 50-day SMA at $2.61, to close the day at $2.57.

This moving average had supported the asset’s price since Nov. 10.

The price then reclaimed this support on Feb. 14 before losing it again two days later.

XRP bulls would be required to push the price back above this level to avoid deeper corrections.

Note that on Nov. 10, 2024, XRP rose above the 50-day SMA after trading below it for over 30 days. This initiated a more than 500% rally in XRP price.

Zooming out further, the altcoin rose above this moving average in July 2024 and September 2024, preceding 35% and 18% rallies in XRP price, respectively.

If the price goes back above this key level, traders could see a significant rise in XRP afterward.

“XRP eyes a breakout” as the price tests $2.40 support, said pseudonymous analyst  MackAttackXRP in their latest analysis on X, adding that a move above the 50-day SMA  “could signal a strong rally” on the upside.

“Long-term XRP outlook is that XRP trades between $1.20-$4.20.”

Related: SEC acknowledges Cboe’s request to list 21Shares XRP ETF

XRP bear flag means $1.70

From a technical perspective, XRP remains in line with a bearish continuation pattern that indicates a potential correction ahead despite the ongoing consolidation.

Key points:

XRP is trading within a bear flag pattern, indicating the possibility of continuing with the downward momentum if key support levels don’t hold.

The bear flag developed after XRP’s drop from $3.13 to a local low of $1.76 between Jan. 31 and Feb. 3.

The consolidation within the bear flag has XRP trading in an ascending parallel channel, with today’s drop testing critical support levels, including the lower boundary of the flag at $2.50.

A breakdown of this level could trigger another price crash.

The bear flag’s downside target, derived from the height of the previous drop, is approximately $1.73, representing a 32% downtick from the current price.

This sentiment is shared by popular crypto analyst CrediBULL Crypto who says that after being rejected from areas above the 50-day SMA, XRP could continue its ongoing correction toward $.177.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.