The XRP price remains under pressure this month as the crypto fear and greed index falls into the fear zone. Following a fall of over 30%, it has entered a deep bear market and is now lingering near a crucial make-or-break point. This article explores whether buying or selling the Ripple token at the current price is safe.
XRP Price is at a Make-or-Break Point
Crypto analysts have mixed feelings about Ripple. What is clear, however, is that the coin is hovering at a make-or-break point. In a recent note, Ali has warned that the coin could approach the key point of $1 if it loses the key support level of $2.
The weekly chart shows why this support level is important. The coin has failed to drop below it several times since January. Also, this price is along the 50% Fibonacci Retracement level.
As noted by BanklessTimes, this price aligns with the neckline of the head-and-shoulders pattern on the daily chart. H&S is a pattern made up of three parts: a head, shoulders, and neckline. It is one of the most bearish patterns in technical analysis.
Therefore, a crash below this level will be a sign that the pattern of the bears and the head and shoulders has prevailed. Such a move will lead to more downside, potentially to the 61.8% retracement level at $1.53, approximately 26% below the current level.
The bearish XRP price forecast will become invalid if it rises above the 23.6% retracement point at $2.70. For now, the decision to buy or hold XRP will depend on whether it moves below the support level near $2.
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Will the Top Ripple Catalysts Save the Day?
XRP price can avoid a catastrophic crash because of the several catalysts that Ripple has. First, the Ripple USD stablecoin is performing well. Its market cap has surged to over $250 million, and its usage is accelerating. On Wednesday, Ripple added the RLUSD stablecoin to its cross-border payment system, which will boost its volumes over time.
Second, several companies have applied to the Securities and Exchange Commission (SEC) for spot XRP ETFs. The SEC’s approval will likely lead to more gains in the coming months as investors boost their positioning.
Moreover, Ripple Labs is likely to embark on a significant growth trajectory as it seeks to be a viable alternative to SWIFT. Brad Garlinghouse has argued that Ripple is a much better option because of its lower costs and faster speeds.
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