Why XRP Price May Crash To $0.5?

Key Insights:

• Analysts highlight these support levels for XRP price; one analysis points to sub-$1 territory.
• Led by BTC, the crypto market shows bullish conditions.
• Institutional movement offers sharper signals than whale activity.

XRP price was trading at around $2.6 at press time. The token was up over 2.7% both intraday and over the week. The weekly and daily changes are fairly positive and signal potential consolidation pathways ahead. In the last 12 months, the price surged by over 400%.

Trading volume showed a strong 21%+ uptick intraday, running higher than the $4.4 Billion mark. The overall market sentiment didn’t look too bad either.

Ripple’s recent acquisition of Hidden Road and the excitement around XRP ETFs highlight a positive fundamental outlook for the token and the blockchain.

As of writing this report, uncertainty was relatively lower than what has been witnessed so far in the month. Polymarket prediction for a rate cut on October 29th is at a 98% certainty; also, the last inflation print solidified a case for a cut. Plus, the Trump-Xi meeting is on, for now.

BTC was up over 4% both intraday and over the week. ETH was on the upside (+4.5%), and the TOTAL3 chart showed a fifth green daily candle. Altseason index as per blockchaincenter(dot)com showed the index at 43, stabilizing after the recent drop.

XRP Price Analysis: The Case For a Sub-$1 Crash

Amid the possibly temporary peace, one market analyst has explained a ‘Doomsday Scenario,’ which investors might find interesting.

EGRAG CRYPO took to X to throw a XRP crash bomb – $0.5 in case of a bear market. Per EGRAG, on the 3-month time frame of the XRP price chart, right before bear markets, a hammer or a hanging-man candle had appeared.

These candles, green or red, were followed by 78% to 85% drops.

Using those percentage values as forecasting guidelines, EGRAG noted that in case XRP manages to climb to $3.65, it was looking at a drop to the $0.5 mark.

$3.65 is almost 40% above XRP’s press time price.

Though the analyst called the potential drop to $0.5 a ‘Doomsday scenario,’ the X post was a strong call to hold on to dear life (HODL).

“This is not a swing trade, not a hype trade, not a short-term play.” EGRAG CRYPTO noted. He added that if XRP goes sub-$1, he would ‘buy harder’.

Today, the XRP price chart reflected stability and consolidation, and did not explicitly give a directional signal. In other words, Ripple coin was testing its press time price zone of $2.6. Plus, the RSI reading was at 55, nearly perfectly neutral.

Ali Charts, a regular commentator on Crypto X, pointed to relatively unsurprising price levels. XRP’s support, according to Ali, should be pegged at $2.15, while the resistance would be pegged at the $2.8 mark.

Note that EGRAG earlier noted that if XRP grabs and launches off the $2.5 mark, it would become primed to surge past $3. At the time, XRP was struggling to dominate the $2.5 mark.

As per the price chart, it might be too early to conclude that XRP has matured at the $2.5 zone.

Whale Activity Or Company Updates – Which To Consider?

STEPH IS CRYPTO, another Crypto X regular, highlighted that an Ripple whale went long earlier today. The whale’s position was worth $8.6 Million at the $2.6 price level.

Last Saturday, we reported that XRP whales dumped over 70 Million coins.

Open Interest data from CoinGlass shows a marginal drop today, at $4.32 Billion, close to the June levels.

Over the past week, the changes in OI were within a relatively short range, reflecting stability. However, OI levels remain significantly below the pre-October 10th levels.

As of now, whale data might not offer reasonable signals as of now, at least by itself. Therefore, it is essential to look at multiple factors to assess price forecasts.

Meanwhile, price action over the last few days can be attributed to the latest WazirX update, among other news.

WazirX, an asset trading exchange with a massive user base in India, resumed operations after a major cyberattack. Per their statement, trading will kick off in phases. Undoubtedly, this move is likely to lead to a positive impact on trading volume for XRP.

Ripple announced on October 24th that it had acquired Hidden Road and rechristened it ‘Ripple Prime’. Hidden Road is a non-bank Prime Broker. In its official press release, Ripple noted that since the acquisition, Ripple Prime’s business had grown ‘3X’.

EGRAG’s price analysis is based on historical price action and does not consider upcoming news updates. Note that he explicitly labels his analysis a ‘Doomsday Scenario’.

Given that price action and derivatives market data reflect positive and stable movement, the weightage for geopolitical and macroeconomic shocks is higher than usual.

Also, a new Fed chair will soon be announced, given that Bessent just released the list of candidates for the post.

As of now, investors are more likely to keep their eyes peeled for geopolitical shocks and global macroeconomic data.