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Ripple (XRP) faces a precarious moment as it battles to maintain support at the pivotal $0.55 price level. According to crypto trader Ali, a breakdown below there risks sparking significant capitulation that could extend as low as $0.34.
In a recent tweet, Ali cautioned followers to prepare for the possibility of substantial downside should $0.55 fail to contain selling momentum. That would represent a nearly 40% drop from current levels.
Also read: Ripple: Analyst Expects XRP To Hit $2.8 If This Happens
XRP has struggled to reclaim momentum following a failed rally last month built largely on optimism around a Bitcoin spot ETF in the U.S. Approval of the landmark crypto product provided only a fleeting boost before fears over inflation and monetary policy quashed market spirits.
Bitcoin has faced similar challenges, with its own price action weakening considerably since nearly breaching $48,300 on the ETF news. The cryptocurrency currently falls below critical support of around $42,000 and is trading at $41,000.
Will XRP lose its support?
XRP’s fate appears tied to that of Bitcoin and broader indices in the near term. Without a swift reversal fueled by renewed institutional adoption or other catalysts, Ali’s warnings of a decline toward 9-month lows could quickly materialize.
Also read: Cryptocurrency: Top 5 Altcoins That Could Yield Maximum Profit In 2024
Traders eye the $0.50-0.55 area as the last line of defense before XRP goes into technical freefall. However, repeated failures to rally back above $0.60 don’t inspire confidence in the token’s outlook.
Without a swift move back above $0.60, XRP may continue drifting onto shakier ground. If $0.55 gives way, Ali’s warning of a capitulatory plunge could quickly develop into reality rather than just speculation. Traders hoping for some holiday cheer could face a lump of coal instead.
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