XRP Price Crash: Why and Where It’s Headed?

XRP price has continued its downturn momentum through October 10, losing a substantial portion of its gains in the recent months.

This continuing declining momentum comes amid a selloff recorded in the broader crypto market, which also suggests that market participants are taking cautious bets on the digital assets.

It’s worth noting that market participants usually take a pause after a robust rally in the market for cues on the potential future movements.

Given the recent rally in the broader market, with BTC price touching a new high, it appears that the same sentiment is hovering among traders now.

In addition, the recent surge has also allowed traders to book robust profits, causing selling pressure in the market.

The recent on-chain data also supports the theory, showing that a flurry of traders have offloaded their Ripple coin holdings as the crypto soared to $3.1 recently.

Now, the market watchers are looking for insights on where the XRP price is heading in the near future.

While some anticipate a further dip in the asset’s price, others anticipate a strong recovery and a continuing rally in the coming days.

So, here we explore the potential reason behind the recent dip and see what may lie ahead for the crypto.

XRP Price Slips as Ripple Whales Book Profit

Ripple coin price retreated by a massive 13.9%% during writing and exchanged hands at $2.42, with its trading volume falling 25% to $5 billion.

The 24-hour high and low of XRP price were recorded at $2.92 and $2.79, respectively. It’s worth noting that the crypto has recently touched a local high of $3.1, before witnessing a 5% decline over the last six days.

The monthly chart showed a loss of 6%, as the investors might have grown concerned. However, the technical indicators like the Relative Strength Index (RSI) suggest that the crypto is nearing a recovery zone.

For context, the XRP RSI was at 41, nearing the “oversold” condition, which might help in a strong recovery of the asset.

Despite that, the recent retreat has fueled concerns among traders over the potential reason behind it.

It appears the cooling momentum in the broader crypto market, with BTC price falling below $123k, has wiped out gains from the altcoins.

On the other hand, the investors also booked profits, with Ripple whales offloading their holdings recently after the robust rally.

According to analyst Ali Martinez, the whales have offloaded 440 million XRP in recent weeks, which might have created havoc pressure on its value.

What Lies Ahead for Ripple Coin?

Despite the recent pullback, the market enthusiasts remain optimistic about a strong rebound in XRP price.

In addition, the speculations over a potential XRP ETF approval by the US SEC later this month further bolstered market confidence.

Commenting on the ETF optimism, pro-XRP lawyer Bill Morgan has recently fueled investors’ sentiment.

In a recent X post, Morgan said that he will “continue panic buying XRP” amid the “XRP ETF demand.”

Looking at the current institutional interest in BTC and Ethereum, it appears that such an approval might also drive the XRP price higher in the near future.

The robust US Spot Bitcoin ETF and Ethereum ETF inflows have contributed to the recent rally in both the top crypto by market cap.

Analysts on Key XRP Price Levels to Watch

Amid the topsy-turvy scenario in the Ripple market, market pundits have highlighted the key support levels to watch ahead.

According to the experts, XRP price must hold these supports to avoid a drastic fall in the near future.

In a recent X post, analyst Ali Martinez said that XRP might retest the $2.72 level ahead. However, he has also noted that $2.8 marks a key support for XRP, which the crypto must hold to witness a rebound.

Echoing a similar sentiment, expert EGRAG CRYPTO said that as long as XRP price holds the $2.77 support, the future outlook remains positive.

According to the expert, the $2.88 level marks another key support ahead, which might help in a strong upward run for the crypto to $3.6.

However, investors should tread cautiously amid the volatile scenario in the market. While the future looks promising, the macroeconomic factors might trigger another selloff in the broader digital assets space.