- XRP fell nearly 11% in a day and 21% in a week, coinciding with an XRP Ledger issue that halted block production for an hour.
- Analyst Steph is Crypto noted past XRP bull runs had deep corrections, with historical pullbacks reaching up to 68.22%.
- Egrag Crypto predicts a 1500% surge if XRP follows its 2017 cycle, potentially reaching $27 after touching key support levels.
XRP has had a sharp decline, dropping by nearly 11% in a single day and having a 21% loss over the past week. This decline has coincided with a technical disruption on the XRP Ledger, which halted block production for about an hour on February 4.
The cause is under investigation, with initial reports suggesting a consensus issue that prevented validations from being published. Analyst Steph is Crypto noted that XRP’s historical bull runs included similar shakeouts, emphasizing that previous cycles saw major corrections before parabolic gains.
Deep Corrections Before Rallies
XRP has a history of steep corrections before major upward moves. Before its 2017 breakout, XRP had multiple pullbacks ranging from 24.67% to 68.22%. These downturns formed part of a broader consolidation phase before a rally.
During early 2017, XRP surged before a 63.47% correction, followed by another 68.22% retracement at $0.35. This extended consolidation eventually led to XRP surpassing $1.50 and reaching new highs.
According to Steph is Crypto, past data suggests that steep pullbacks fuel rather than end bull runs. Market movements indicate XRP is trading within a similar accumulation range, potentially leading to a breakout.
Support and Resistance Levels
XRP previously broke above $1 and reached a high of $3.30 in late January before dropping to $2.40. The 50 day moving average, previously acting as support at $2.81, has now turned into resistance. The 200 day moving average, at $2.40, is a long term support level.
If XRP holds above $2.40, a retest of $2.81 is possible. Breaking above this level could lead to a bullish momentum, potentially pushing XRP back above $3. However, if support at $2.40 fails, further declines toward $2 or $1.80 could follow.
Analyst Predicts a 1500% Surge
Egrag Crypto pointed out that XRP’s current market patterns resemble its 2017 cycle, where a similar pattern led to a 1500% surge.
Egrag suggests XRP recently touched the same foundational level and the Bull Market Support Band (BMSB), aligning with previous breakout conditions. In 2017, this setup fueled a rapid rally, and if the trend repeats, XRP could potentially reach $27.
