- XRP crashed from above $3 to a yearly low of $1.76 before rebounding above $2.
- Market analyst EGRAG, who predicted the drop, now sees $3 as the next major target.
- Analysts Dom and Anbessa highlight liquidity issues and consolidation, suggesting a potential recovery.
XRP faced a major crash, dropping below $3 for the first time since mid-January, touching $1.76 before rebounding. The broader crypto market also suffered, with over $2.2 billion in liquidations, marking the worst sell-off since FTX’s collapse.
The crash stemmed from growing fears of a trade war after U.S. President Donald Trump announced high tariffs on Mexico, Canada, and China. However, analysts now believe that XRP’s dip may have set the stage for a strong recovery.
Can XRP Hit $3 Again?
Before the crash, market analyst EGRAG warned of a possible 40% drop, citing a bearish “shooting star” candlestick pattern on the monthly chart. His prediction materialized, with XRP falling to $1.76 before rebounding.
EGRAG now believes that XRP could target $3 once again. His analysis suggests that the altcoin bounced off a key support trendline, reinforcing a potential bullish reversal.
https://x.com/egragcrypto/status/1886345382436667578
For XRP to sustain its recovery, trading volume must increase. He also noted that if the next candle closes below $1.83, the risk of further downside remains.
Market analyst Dom attributed XRP’s sharp drop to low liquidity in the order book.
- Market makers withdrew bids, reducing buying pressure.
- $300 million in sell orders flooded the market, overwhelming existing buyers.
- With no immediate liquidity, XRP plummeted until it reached areas with resting buy orders.
Dom compared this event to the 2020 Bitcoin crash, where BitMEX halted trading to prevent further BTC losses. In XRP’s case, once forced selling stopped, the price quickly rebounded by 29%, filling the order book.
Watch $2.45 for a Bullish Entry
Another analyst, Anbessa, believes XRP is now in consolidation mode.
- Mid-range support is holding, signaling potential stability.
- A break above $2.45 could trigger a bullish move toward $3.
At press time, XRP trades at $2.34, with volatility dropping. If buying activity returns, reclaiming $2.45 could give bulls a chance to push toward $3.
Despite the sharp drop, XRP is showing resilience as it consolidates above $2.30. Analysts believe that if buying pressure returns, a move toward $3 is possible.
