Will XRP Price Crash Again? Here's What to Watch

XRP’s price has experienced significant volatility in recent weeks, with a sharp 17% drop over the past seven days and a 27% decrease in the last month. This decline has raised concerns among traders and investors about whether XRP could continue to fall or if a potential rebound is on the horizon.

Key Levels to Watch: Will XRP Hold Above $2.20?

As XRP’s price continues to fluctuate, all eyes are on its support levels, particularly the increasingly important $2.20 mark. If the bulls can maintain this level, the cryptocurrency may avoid a deeper crash. However, if this support fails, it could signal further downside for the asset.

XRP recently lost several key support levels, including the critical 100-day simple moving average (SMA) at $2.43 and the psychological $2.40 level. This has raised the possibility of a further decline, and traders are now closely monitoring the next levels below this threshold.

What Are the Key Support Levels Below $2.40?

If XRP’s price continues to struggle and breaks below $2.20, traders will turn their attention to two major support zones:

$1.90 to $2.06 Range: The first key area of interest is between the previous range low at $1.90 (from Dec. 9, 2024) and the recent low at $2.06 (from Feb. 25). If XRP falls below the $2.15 level, it could target the liquidity cluster in this range.

$1.51 to $1.82 Range: If the downward momentum persists and the $2.06 to $2.15 range fails to hold, XRP could drop further, potentially testing the fair value cap between $1.51 and $1.82. This area was formed during the rally in late 2024, and the 200-day SMA is also positioned just below this range, making it a significant demand zone.

Worst-Case Scenario: $1.27 to $1.45

In the event of further downside pressure, some analysts are eyeing a worst-case scenario for XRP. According to pseudonymous analyst Cvotrades, if XRP loses the $2.00 support zone, it could fall to as low as $1.70. The critical level to watch is the weekly close—if it closes below $2.09, it could trigger a further sweep to $1.77. The worst-case scenario would involve a drop to the $1.27 to $1.45 range, where XRP’s price could find significant support.

Bear Flag Formation Signals Potential for Further Decline

From a technical perspective, XRP is currently trading within a bear flag pattern on the four-hour timeframe, suggesting that the downward trend could continue if key support levels are breached. This pattern typically indicates that after an initial decline, the price consolidates before continuing in the same direction.

The bear flag formed after XRP’s drop from $2.60 to a local low of $2.06 between Feb. 24 and Feb. 25, and the price has since been consolidating within an ascending parallel channel. Today, XRP is testing critical support levels, including the lower boundary of the bear flag at $2.20. A breakdown below this level could trigger a continuation of the downward momentum.

Downside Target: $1.73

If the bear flag pattern plays out as expected, XRP could see a significant drop, with the downside target around $1.73. This represents a potential 22% decline from the current price, further exacerbating the bearish sentiment in the market.

Conclusion: Can XRP Avoid a Deeper Crash?

XRP’s price has faced substantial losses in recent weeks, and its future largely depends on whether it can hold key support levels. The $2.20 level is critical for the bulls, as a breakdown below this price could trigger further losses, potentially targeting $1.73 in the near future. Traders should keep an eye on the weekly close and watch for any signs of reversal in the coming days.

As always, crypto markets are volatile, and it’s essential to monitor developments closely.