Analyst Predicts XRP Could Fall to $1 as XRP ETFs Record Net Weekly Outflows

Crypto analyst Chart Nerd has predicted that the XRP price could drop to as low as $1 as part of a liquidity grab, after which the altcoin could see a relief bounce to the upside. This comes as the XRP ETFs record their first weekly net outflows in over a month.

XRP Price Could Still Drop To $1 As Iran War Pressures Crypto Prices

In an X post, ChartNerd stated that the altcoin could drop to $1 based on the current liquidity heatmap. The analyst noted a liquidity stack between $1 and $1.20, while there is also a liquidity stack at $1.80.

As such, he stated that it won’t be surprising if there is a liquidity grab to the $1.20 to $1 SS range before sweeping the strong BS liquidity around $1.80. ChartNerd also opined that things could play out the other way, with the XRP price rallying to the $1.80 level before declining to sweep back the lower $1 range. He added that this is the most likely scenario for XRP in March.

It is worth noting that the altcoin is currently facing downside pressure amid the U.S.-Iran war, especially as oil prices rise to multi-year highs. The rising oil prices have raised concerns that inflation could trend higher, which could cause the Fed to hold rates steady for longer, a move that is bearish for risk assets.

However, as CoinGape reported, a positive for the XRP price is that the XRP whale Flow 30-DMA on-chain metric, which measures whale activity over 30 days, has now turned positive after more than 3 months. This signals a renewed buying interest, which could spark a rebound.

ETFs Record Net Weekly Outflows

SoSoValue data shows that the XRP ETFs recorded net weekly outflows of just over $4 million, their first weekly outflows since January 30. Notably, these funds saw net inflows in the first three days of trading this week but then recorded net outflows on March 5 and 6.

The XRP ETFs saw net outflows of $16.62 million yesterday, their largest since January 29. The outflows came as the XRP price fell below $1.40, mirroring Bitcoin’s decline below $70,000. BTC fell below this level as oil prices climbed above $90.

It is worth noting that the Bitcoin, Ethereum, and Solana ETFs also saw outflows of $349 million, $83 million, and $8 million, respectively. Market participants are currently pricing in the possibility of the U.S.-Iran war dragging on for a while, which could further put downward pressure on crypto prices.