Bears have firmly retaken control over the past several days, dragging the cryptocurrency market back into a sea of red.
The sell-off appears driven by hotter-than-expected US inflation and shockwaves from Nvidia, where longtime CEO Jensen Huang stepped down amid a swirling love scandal.
Ripple’s XRP didn’t escape the downturn, with its price tumbling 15% in a week and temporarily dipping below the $1 psychological level. And while investors hope for a quick resurgence, one popular analyst warned the pullback may intensify in the near future.
More Pain Ahead?
Earlier this month, Ali Martinez claimed that XRP has been trading inside a certain channel and has broken below the mid-range support at around $1.29. That said, he shifted his attention to the structure’s lower boundary near $0.99 as the next potential support level.
Just a few hours ago, the analyst said Ripple’s cross-border token has completed a full reversal toward the channel’s floor. He stressed the importance of holding the $0.99 mark, as losing it could trigger an extended correction toward $0.80.
The waning institutional appetite signals that the pullback may indeed intensify in the short term. Spot XRP ETFs, which turned into a ghost town last week, have registered significant outflows in the past few days. This means that pension funds, hedge funds, and other risk-averse institutions have scaled back their exposure to the token, leaving little fuel for a strong recovery.
Meanwhile, the XRP Army is still digesting David Schwartz’s revelation. The former Ripple CTO and one of the most influential figures in the entity’s history said he hasn’t bought XRP in a long time and has sold nearly all the digital assets he’s ever held because he is uncomfortable with risk.
The admission has sparked fierce backlash from the community, with many calling it a painful contradiction. After all, in theory, Schwartz should be among the people most aware of XRP’s use cases, and his sell-off comes as a surprise.
The Bullish Signals
However, not all is doom and gloom. XRP’s Relative Strength Index (RSI), for example, recently plunged to around 21, its lowest level since June. This means the asset has entered deep oversold territory and could be gearing up for a price revival.
The behavior of the big investors is another ray of hope. Unlike BTC and ETH whales who have offloaded massive amounts of crypto lately, those holding XRP have increased their exposure. As CryptoPotato reported, they have scooped up roughly 65.32 million units in just four days, signaling strong conviction and potentially laying the groundwork for a relief rally.
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