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Analyst Predicts XRP Price Crash Below $3, But There’s Good News

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After the announcement of the conclusion of the Ripple-SEC legal battle that began in 2020, the XRP price had surged by more than 12% in response. This brought the altcoin back above the $3 level to put the bulls back in charge of the price once again. However, there has been a slowdown in the price in the face of profit-taking, and a crypto analyst has suggested that the price could continue to decline toward the next major support level.

Descending Trendline Break Not Enough To Hold Price

Following the surge that was triggered by the Ripple-SEC announcement, the XRP price was able to break a descending trendline that had formed after its July peak. This break had seen the price push toward $3.4 before being beaten back down again, crypto analyst HAMED_AZ highlighted in a new analysis.

This was triggered by the resistance encountered just before $3.4 and has now sent the altcoin back into a corrective phase. So far, the bulls have been fighting off this correction as the $3.2 level has continued to serve as support. However, the analyst predicts that the correction is far from done.

HAMED explains that it is likely that the XRP price will end up breaking back down to retest the previously broken trendline at around $2.9. This would mean another crash below $3 could be in the works, erasing all of the support that had been built up at this level.

XRP price

The Continuation Of The XRP Price Rally

While a break toward the previously broken trendline is expected, the analyst’s chart suggests that the digital asset could find support just above $2.9. This level would mark the completion of the pullback and would serve as the lift-off point for a bullish continuation that could push the price higher.

This move would also put the XRP price on the path of an ascending trendline from the month of June, which would coincide with the $2.93 bottom. Once this is completed, HAMED expects the XRP price to pull upward toward brand-new all-time highs.

From here, an over 35% increase is expected, which would put XRP over $4. If this happens, then it would clear the current peak of $3.84, which was recorded 8 years ago in 2018.

XRP price chart from TradingView.com

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