XRP Down 22% In 7 Days: How Low Will It Go?

XRP, the native cryptocurrency of Ripple Labs, has experienced a significant downturn in recent days, dropping by approximately 22% in just one week. This decline has raised concerns among investors about the potential bottom for XRP's price. In this article, we will explore the factors contributing to XRP's recent performance and discuss potential price targets based on technical analysis and market sentiment.

Factors Contributing to XRP's Recent Decline

1. Market-wide sell-off: The broader crypto market has been experiencing a significant sell-off, with top cryptocurrencies like BTC, ETH, and SOL also witnessing substantial losses. This market-wide correction has dragged XRP prices down as well.
2. Inflation concerns: The release of a hotter-than-expected inflation CPI report on February 13 sparked fears of tighter monetary policy, which negatively impacted risk assets, including cryptocurrencies.
3. Bybit exploit: The $1.4 billion exploit on Bybit, one of the largest cryptocurrency exchanges, raised concerns about security and regulatory compliance, contributing to the overall market sell-off.
4. Tariff announcements: Former President Donald Trump's announcement of tariffs on North American neighbors Canada and Mexico added geopolitical uncertainty, further pressuring cryptocurrency markets.
5. Regulatory uncertainty: The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has created uncertainty around XRP's regulatory status, potentially discouraging investors from holding the token.

Technical Analysis: XRP's Price Targets

Based on the recent price action and technical indicators, XRP's price could potentially find support at the following levels:

1. $2.15 - $2.20: This price range has served as a critical support zone for XRP in recent weeks. A successful defense of this level could signal a potential rebound for the token.
2. $2.00 - $2.05: If XRP's price continues to decline, it may find support at this price range. This level has previously acted as a strong support zone and could attract buyers if tested.
3. $1.80 - $1.85: In the event of a more significant market-wide correction, XRP's price could potentially drop to this price range. This level has historically served as a strong support zone and could provide a buying opportunity for long-term investors.

Market Sentiment and Potential Rebound

Despite the recent price decline, XRP's market sentiment remains somewhat divided. On the one hand, the token has formed a bullish technical pattern, such as a flag-and-pole price action pattern on the daily chart. This indicates a potential for upward movement if certain levels are breached. On the other hand, the ongoing battle between long-term investors and short-term traders has created an ongoing tug-of-war between bulls and bears.

If XRP can successfully break the $3.21 resistance level and shift the market sentiment in its favor, it could see significant price appreciation. However, if selling pressure continues to dominate, XRP could face further consolidation or retracement before making another attempt at a breakout.

In conclusion, XRP's recent 22% decline has raised concerns about the token's future price trajectory. While technical analysis suggests potential support levels, the ongoing market-wide sell-off and geopolitical uncertainty could continue to weigh on XRP's price. Investors should closely monitor XRP's price action and market sentiment to make informed decisions about their holdings.