XRP has seen a sharp price decline of 19 percent from its recent multiyear high, with a 12 percent drop recorded in the last 24 hours alone. However, analysts remain optimistic, terming the fall a “healthy correction” within the broader context of a bullish market structure. Despite the pullback, XRP’s long-term targets of $10 to $15 remain viable according to several market observers.
XRP Falls from Eight-Year Highs amid Market-Wide Liquidations
The price of XRP dropped from its recent multiyear peak of $3.66 to an intraday low of $2.95 on Thursday. At the time of reporting, XRP is trading at $3.13, registering a daily decline of 12.5 percent. The correction mirrors a broader downturn in the crypto market, which saw a 3 percent slide over the past 24 hours, bringing the total market capitalisation down to $3.79 trillion.
This decline has been intensified by a wave of cascading liquidations, with leveraged traders being the most affected. According to data from CoinGlass, the past 24 hours saw $968 million in crypto liquidations, with XRP accounting for $113.62 million of that figure. Out of these, $106.8 million were long positions. Ether saw the largest amount of liquidations at $195 million, including $168 million in long positions.
Analysts Remain Bullish Despite Volatility
Despite the sharp decline, analysts are not alarmed. They describe the correction as a routine pause in the upward momentum of the market. Pseudonymous analyst CryptoData said that while the total liquidations did not quite hit the historical $1 billion mark that often signals a local bottom, the recent volatility could serve as an equivalent indicator.
XRP/USD four-hour chart.
Market analyst Egrag Crypto noted that although XRP’s recent formation was broken by significant selling pressure, buyers quickly returned with aggressive purchases. He urged investors not to panic and to hold their positions. Similarly, analyst XRPunkie said this pullback is simply a temporary dip before a likely rebound, reiterating that XRP’s targets of $10 to $15 remain achievable.
Technical Indicators Signal Reduced Bullish Momentum
The recent decline follows an overheated market, with XRP previously showing overbought signals across multiple time frames. On the weekly chart, XRP’s Relative Strength Index (RSI) has dropped from 71 to 61, while the daily RSI has fallen from a peak of 88 to around 56. This indicates a loss in bullish strength, though not necessarily a shift to bearish territory.
Technical analysts point to the $3 level as a key support area, which also aligns with the 100-period Simple Moving Average (SMA). If this level fails to hold, XRP could decline further to test the 200-period SMA near $2.60. Some traders view these levels as attractive opportunities to buy into the asset before the next leg up.
Long-Term Outlook Still Positive
Despite short-term price action, the long-term sentiment around XRP remains optimistic. Analyst Dom recently suggested that XRP could peak between $7 and $10 depending on market conditions and its relative dominance. Lukas Enzersdorfer-Konrad, deputy CEO at Bitpanda, also expressed confidence in XRP’s potential to surpass its 2018 all-time high, citing robust liquidity and growing trust in alternative cryptocurrencies.
While recent market movements have rattled some traders, many experts believe XRP’s current correction is part of a natural cycle in volatile markets. With solid support levels and renewed buying interest, the asset could be poised for another move upwards in the coming weeks.
