Analyst Forecasts Drop to $0.41 as XRP Slumps Below $0.50, But Predicts Recovery Above $2

As XRP collapses below the pivotal $0.50 level, top market analyst EGRAG has projected a possible drop to $0.41, but expects an imminent recovery above the $2 threshold.

EGRAG revealed this in one of his recent analyses on XRP, looking to provide an update to a report last May. Notably, in the May 2023 report, the analyst spotlighted a multi-year descending trendline he calls the “final wake-up line” on the weekly XRP chart.

XRP changed hands around $0.46 at the time. EGRAG predicted that if XRP breaks above the final wake-up line and corrects mildly to retest it without dropping below $0.45, it could begin a journey that would see it capture some price targets, ultimately leading to $6.4.

These price targets included $0.85, $1, $5.5 and then $6.4. XRP eventually broke above the final wake-up line and claimed the first target at $0.85 in July 2023. An attempt to hit $1 faced opposition from the bears, with XRP only hitting a peak of $0.93.

A Recovery Above $2 After Drop to $0.41

In his latest analysis, EGRAG pointed out that the surge to $0.93 followed the first wave of a five-wave structure. According to him, the second wave was to introduce a 90% correction of this surge. This correction began in August 2023 and has since persisted, with XRP unable to breach $0.75.

EGRAG noted that amid the XRP downturn, the token could possibly collapse to the $0.41 zone in the ongoing correction within Wave 2. However, he expressed optimism that Wave 3 could bring a recovery from the downtrend.

The analyst’s initial target for this recovery stood at $5. Nonetheless, considering current market realities, an adjustment of the wave count brings the target to the range between $2.2 and $2.8. He sees this level as the next short-term price target.

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XRP Slips Below $0.50

EGRAG’s latest analysis comes at a time when XRP has broken below the $0.50 price territory. The $0.50 psychological level has proven to be one of XRP’s most robust defense points against the bears. 

XRP has historically leveraged this level to hedge against more substantial declines during a market downturn. Each time the bears breached the level, XRP summarily recovered it.

However, in the latest instance, the asset has spent most of the morning underneath the $0.50 territory after recently giving it up. This increased bearish pressure came up yesterday when XRP collapsed sharply to a three-month low of $0.4853 following reports of a hack incident.

The initial reports from on-chain sleuth ZachXBT suggested that the hack, which siphoned 213 million XRP tokens, affected a Ripple wallet. However, Chris Larsen, Ripple’s executive chairman, clarified that the affected account was his personal wallet, and not Ripple’s.

Ripple CEO Brad Garlinghouse also provided this clarification. Garlinghouse and Larsen emphasized that all of Ripple’s wallets remain secure. However, XRP remains in the clutches of the bears, as the dumping of the 213 million XRP compounded selling pressure.

At the reporting time, XRP currently changes hands at $0.4933, looking to reclaim the $0.50 territory. Closing below this zone would be extremely bearish for the asset, as it could further dampen market sentiments. 24-hour trade volume is down 24% to $1,347,023,651.