XRP Price Prediction: Analyst Calls $0.99 Key Support Level

Cryptocurrency Ripple XRP has dropped by 15% over the week and temporarily fell below the psychological mark of $1. Amid the overall decline in the cryptocurrency market, analyst Ali Martinez warned that the correction might continue. According to his assessment, the key support level is around $0.99, and its breach could open the way for a decline to $0.80.

Earlier this month, Martinez noted that XRP was trading within a specific price channel but fell below its mid-boundary – approximately $1.29. Subsequently, the analyst pointed to the lower boundary of the channel around $0.99 as the next potential support. According to him, the price has already made a full reversal towards this level.

Institutional Demand and Statements by David Schwartz

The decline in institutional investor interest could also increase pressure on XRP. Spot exchange-traded funds (ETF) for this asset have recorded significant outflows in recent days. This may indicate a reduction in positions by pension funds, hedge funds, and other institutional market participants.

Additional attention from the community was drawn by statements from David Schwartz, former CTO of Ripple. He stated that he has not bought XRP for a long time and has sold almost all the digital assets he ever owned, as he feels uncomfortable with a high level of risk. Some community members perceived this statement critically, considering it contrary to expectations from someone well-acquainted with the use of XRP.

What Factors Could Support XRP

Despite the negative trend, certain indicators suggest the possibility of recovery. The Relative Strength Index (RSI) for XRP recently dropped to about 21 – the lowest value since June. This corresponds to a deep oversold zone, although it does not guarantee a price reversal on its own.

Another potentially positive signal came from the actions of large holders. According to CryptoPotato, over 4 days, they increased their holdings by approximately 65.32 million XRP. This contrasts with the situation of large holders of Bitcoin and Ethereum, who have recently been reducing their positions.

Thus, the dynamics of XRP remain ambiguous: outflows from ETFs and the technical picture indicate the risk of further decline, while oversold conditions and purchases by large holders may support recovery. The level around $0.99 remains an important mark in the scenario described by Martinez.