XRP could still drop further before a larger recovery, according to Financial Advisor Cryptoinsightuk. In a detailed essay posted on X and titled “XRP – The Good, The Bad and The Ugly,” the a
XRP could still drop further before a larger recovery, according to Financial Advisor Cryptoinsightuk.
In a detailed essay posted on X and titled “XRP – The Good, The Bad and The Ugly,” the analyst examined XRP’s liquidity levels, leverage, relative performance against Bitcoin and Ethereum, as well as several technical indicators.
While he outlined several downside targets, he also maintained that current prices offer an opportunity to accumulate XRP through dollar-cost averaging.
XRP Could See Further Downside
Cryptoinsightuk began with his view that crypto markets move in cycles. He said buying quality assets at significantly reduced prices has worked for him throughout his career. He considers a price 70% to 80% below its all-time high to represent a low price, while acknowledging that assets can still fall further.
He said he is currently dollar-cost averaging into XRP at these levels with additional cash. However, his technical analysis suggests traders should prepare for more volatility before a sustained recovery.
According to his liquidity analysis, XRP could face roughly 7% downside on lower timeframes. A move toward $0.89 could remove approximately $157 million in leveraged long positions. On higher timeframes, he identified potential downside of 15% to 23%, which could put XRP around $0.85 or as low as $0.77.
Cryptoinsightuk identified $0.93 as an important area to watch, with his preferred target sitting between $0.88 and $0.925. He also identified $0.75 as another support level, while $0.66 represents his worst-case downside scenario.
He linked these levels to XRP’s continuing pattern of lower highs and lower lows. He also noted that liquidity sweeps can push prices beyond the areas where liquidations initially cluster.
XRP Faces Pressure Against Bitcoin and Ethereum
The analyst also examined XRP’s performance against Ethereum and Bitcoin. He said XRP could decline by approximately 13% against Ethereum before reaching its first major support. A deeper move could produce a 49% decline against ETH, depending on how the two assets perform.
Against Bitcoin, he sees a potential 26% decline toward a previous order block. He also discussed a possible 37% decline but said the 26% target appears more reasonable to him.
Cryptoinsightuk also examined XRP dominance. He said the chart could experience another 43% decline, potentially bringing XRP dominance toward 1.6%.
The Analyst Sees Significant Upside
Despite these downside scenarios, Cryptoinsightuk’s bullish outlook remains substantial. He said that removing the liquidity above XRP could require a gain of at least 197%, with another potential target representing a 330% increase.
He also highlighted XRP’s weekly RSI, which recently reached an oversold reading for only the second time in the asset’s history. He compared the current setup with the previous occurrence, which preceded a gain of approximately 1,085%. A similar move from current levels could place XRP near $11.
On the monthly RSI, he noted that XRP currently sits around 40, its lowest recorded reading. Historical cycles eventually pushed the indicator into overbought territory after reaching previous lows.
Using several historical measurements, Elliott Wave analysis, and Fibonacci levels, Cryptoinsightuk presented a potential XRP target around $14, with the possibility of a larger move beyond that level.
For him, the key setup involves XRP sweeping lower liquidity first, establishing a higher RSI low, then beginning a stronger recovery. He said that combination would give him greater confidence that XRP has established its cycle low.
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The post Expert Shares the Good, the Bad, and the Ugly of XRP appeared first on Times Tabloid.