- Analyst Egrag Crypto forecasts a major XRP/BTC crash, targeting Fibonacci levels 1.272, 1.414, and 1.618.
- XRP trades below $2.82 resistance with MACD and RSI showing bearish momentum, risking a drop to $2.50 support.
- Analyst Ali highlights tightening Bollinger Bands, signaling potential XRP volatility with a breakout likely in either direction.
XRP has seen bearish market activity and predictions of an impending major crash. According to analyst Egrag Crypto, the XRP/BTC pair may see a drop, possibly targeting Fibonacci levels 1.272, 1.414, and 1.618.
Egrag noted that the market is following a rising wedge pattern, with a potential crash expected upon closing below the “Area of Confirmation.” This movement could lead to a three-wave sequence, starting with a major drop.
It could then be followed by a retracement, and ending with another decline. XRP’s current low volume activity suggests the recent dump lacks institutional backing, hinting at a bear trap rather than organic selling pressure.
Market Trends and Recent Price Activity
At press time on January 27, XRP was trading at $2.81, down by 9.79% in the last 24 hours but up 30.10% over the month. On a four hour timeframe, XRP’s price remains below important support levels, suggesting bearish momentum.
Using Anchored VWAP, XRP is under the resistance zone between $2.80 and $2.82, indicating sellers’ dominance. Support from lower zones near $2.70 offers an important level to monitor.
Reclaiming the $2.80-$2.82 range could lead to a short term recovery, while failure may lead to a drop toward $2.50-$2.60. The RSI is at 27.45, indicating oversold conditions. Historically, such levels often precede short term price bounces, though sustained trends require RSI to exceed 30.
However, if RSI remains low, bearish momentum is expected to persist, driving prices downward. Meanwhile, the MACD remains negative at -0.0352, with no bullish crossovers in sight. The deeply negative histogram suggests momentum remains downward, suggesting selling pressure unless a reversal occurs.
Support and Resistance Levels
The immediate support for XRP is at $2.70, aligning with the lower Anchored VWAP zone. If this level breaks, prices may decline to $2.50, a psychological barrier and historically major support.
On the upside, reclaiming resistance at $2.80-$2.82 could lead to a recovery toward $3 or higher. A sustained rally, however, would require RSI improvement and MACD shifts toward positive momentum.
Analyst Ali’s View
According to analyst Ali, the Bollinger Bands on XRP’s daily timeframe are tightening, often a precursor to significant price movement. This compression indicates rising volatility, suggesting XRP may experience a breakout in either direction soon.
