XRP price dips below 2 dollars: Will there be a mega crash to $0.88?

The XRP price fell below the psychological limit of $2 on Friday. The currency lost more than 14 percent last week and is currently trading around $1.92. That is painful, but technical analysts warn of a much larger decline. Maybe even towards $0.88.

Megaphone pattern warns of major setback

A so-called megaphone pattern emerges on the weekly chart, in which the price shows increasingly higher tops and lower bottoms. According to technical analysts, this points to increasing volatility.

A break below the lower trend line, which is now around $1.80, could trigger a major correction. In that scenario, a price target of $0.88 comes into play. This means a potential decline of more than 54 percent compared to the current level.

Key levels to watch are the 100-week moving average at $1.60 and the 200-week moving average at $1.05. The weekly RSI now stands at 39 and is falling further out of overbought territory, indicating increasing selling pressure.

Losses mount, sentiment turns

Data from Glassnode shows that more than 41 percent of XRP holders are currently underwater. The so-called Net Unrealized Profit/Loss (NUPL) indicator is shifting from euphoria to fear. Historically, similar sentiment shifts in 2018 and 2021 were preceded by strong corrections.

The realized losses on XRP have now risen to the highest level in seven months. According to Glassnode, the 30-day average of realized losses is now around $75 million per day.