A market pundit has outlined three bearish targets for XRP amid the latest slump on the back of the market-wide downtrend.
For context, this prevalent downtrend pushed Bitcoin (BTC), the leading crypto asset, below $80,000 for the first time since early November. Currently, BTC is down 16.48% this week, and the rest of the market has collapsed alongside, with XRP also suffering major losses.
In particular, XRP has dropped 23.23% over the past week, having given up several crucial support levels around $2. With the asset down by another 7.5% this morning, the bears are now knocking at the lowest end of the $2 mark, a hair’s breadth away from pushing XRP below the pivotal region.
Temporary Relief for XRP?
At this critical moment, market analyst Arina Karayi has presented three bearish targets for XRP in a TradingView analysis. Interestingly, the asset appears to have already moved below the first bearish target at $2.23. The bears decisively retook this level on Wednesday, Feb. 26.
However, Karayi predicted in her report that the bulls might take over, albeit for a moment. According to the analyst, XRP is likely to witness a short period of bullish recovery, which could push its price above $2.5085. She cited historical data, with XRP witnessing similar recoveries at this level in the past.
Three Bearish XRP Targets | Arina Karayi
Nonetheless, the analyst believes this recovery would be short-lived. For context, XRP is likely to rise to the upper trendline of a descending channel that has dictated its price action since mid-January. If the projected recovery retests the upper trendline at $2.6, Karayi expects another pullback.
Bearish Targets for XRP
According to the analyst, sellers would regain control of the scene, bringing the other two bearish targets into play. Notably, below the first bearish target at $2.23 is a second one around $1.96, which would translate to a drop underneath $2. Recall that analysts believe XRP remains bullish as long as it holds above $2.
With XRP currently changing hands at $2.02, a mild 2.97% drop from this area would trigger a slump to the second bear target. It is important to note that the bears have already defined Karayi’s projection of a short-term recovery and have instead bypassed this rebound to push the asset to lower regions.
Below $1.96 is a third bearish target at $1.57, representing a low last witnessed in late November 2024. Such a target represents a 22% drop from current values and a 54% collapse from the yearly peak of $3.4.
However, Karayi admits that the bulls could invalidate this bearish projection if Bitcoin’s dominance drops. After a massive slump earlier this week, the BTC market dominance has continued to increase since yesterday, now at 60.84%. A drop in this metric could translate to more capital entering altcoins, giving them an opportunity to demonstrate resilience.
