Why can the price of XRP fall to 0.5 dollars?

The price of XRP is currently trading around 2.6 USD at this moment, recording a 6.2% increase over the week, reflecting a positive trend and potential for Accumulation in the near future. Notably, in the past 12 months, the price has increased by more than 400%.

The trading volume also shows exceptional strength, increasing by more than 21% in a day, surpassing the 4.4 billion USD mark. Overall market sentiment remains positive.

Ripple's recent acquisition of Hidden Road, along with the expectations surrounding the XRP ETF, has further strengthened the positive outlook for this token as well as Ripple's blockchain ecosystem.

At the time of reporting, the level of instability in the market has decreased compared to previous days in the month. According to Polymarket's predictions, the likelihood of the Federal Reserve (Fed) lowering interest rates on October 29 is up to 98%. In addition, the latest inflation data also reinforces the reasons for a rate cut. Furthermore, the meeting schedule between President Trump and Chairman Xi Jinping is still being maintained.

Bitcoin (BTC) also recorded an increase of more than 4% both daily and weekly. Ethereum (ETH) continues its upward trend with an increase of 4.5%. The TOTAL3 chart shows a fifth consecutive green candle. According to the Altseason index from Blockchaincenter.com, this index is at 43, indicating stability after the recent decline.

XRP Price Analysis: Is There a Scenario for a Deep Drop Below 1 USD?

In the context of the temporarily stable market, an analyst has presented a “Doomsday” scenario that investors need to pay attention to.

EGRAG CRYPO has shared on social media X about the possibility of XRP plummeting to 0.5 USD if we enter a bear market. According to EGRAG, on the 3-month time frame of the XRP price chart, a hammer or hanging-man candle appears before each bear market.

These candles, whether green or red, all lead to sharp price declines ranging from 78% to 85%.

XRP Price Analysis | Source: EGRAG CRYPTO, Based on these figures, EGRAG forecasts that if XRP reaches the level of 3.65 USD, it is highly likely to adjust back to the mark of 0.5 USD. The price of 3.65 USD is approximately 40% higher than the current price of XRP.

Although referring to the scenario of a drop to 0.5 USD as “Doomsday”, EGRAG still recommends that investors should persist in holding (HODL).

“This is not a short-term trade, not a trend-following strategy, nor a scalping strategy,” EGRAG CRYPTO emphasized. He also mentioned that if XRP falls below 1 USD, he will “buy more aggressively.”

Currently, the XRP price chart shows stability and Accumulation, without a clear trend. In other words, XRP is testing the price range of 2.6 USD. The RSI index is at 55, reflecting a neutral state.

Ali Charts, a regular analyst on Crypto X, believes that the support level for XRP should be set at 2.15 USD, while resistance is at the 2.8 USD mark.

XRP price chart | Source: Ali Martinez, Previously, EGRAG noted that if XRP holds steady and bounces back from the 2.5 USD mark, there would be a chance to surpass 3 USD. However, at that time, XRP was still struggling in this price range.

According to the current price trends, it may still be too early to assert that XRP has truly stabilized at the 2.5 USD level.

Whale activity or business information – What factors should be considered?

STEPH IS CRYPTO, another analyst on Crypto X, stated today that a Ripple whale purchased 8.6 million USD at a price of 2.6 USD. Earlier last Saturday, XRP whales sold over 70 million tokens.

The open contract data (OI) from CoinGlass recorded a slight decrease over the day, down to 4.32 billion USD, close to the level of June. In the past week, the OI fluctuations have remained within a narrow range, reflecting stability. However, the OI is still significantly lower than the period before October 10.

At the present time, data on whale activity has not provided clear signals, at least when considered in isolation. Therefore, investors should consider various factors when forecasting prices.

On the other hand, the price fluctuations in recent days may be related to the latest updates from WazirX along with some other news.

WazirX, a major cryptocurrency exchange in India, has resumed operations after a serious cyber attack. According to the announcement, trading activities will be reopened in phases. This move is expected to positively impact the trading volume of XRP.

Ripple also announced on October 24th about the acquisition of Hidden Road and rebranding it as 'Ripple Prime'. Hidden Road is a Prime Broker outside the banking system. According to the press release, since the completion of the deal, the business of Ripple Prime has grown threefold.

The price analysis of EGRAG is mainly based on historical price fluctuations, without considering new news factors. It is important to note that he refers to this as the “apocalypse scenario.”

In the context of price movements and derivative data reflecting stability, geopolitical and macroeconomic factors may have a stronger than usual impact. Additionally, the new Chair of the Fed will be announced soon, as Bessent has just released the list of candidates for this position.

At the moment, investors should pay attention to geopolitical fluctuations and global macroeconomic data to make appropriate decisions.

Mr. Teacher