Analyst: ‘Possible drop in XRP could be the buying opportunity of a lifetime’

XRP is going through a difficult period. The cryptocurrency closed February with the largest monthly loss in a year and has now been in the red for five months in a row. Yet market analyst Egrag Crypto sees this persistent price weakness as an exceptional opportunity for investors. According to him, a further decline could even result in a rare buying opportunity.

XRP price under heavy pressure

The XRP price is currently around $1.35. February ended with a decline of 16.2 percent, according to data from CryptoRank. That is the largest monthly loss in twelve months. This means that XRP has been lower for five months in a row, something that last happened in early 2017.

In January, XRP briefly touched a level of around $2.40 during a so-called relief rally, a temporary rebound after a sharp decline. However, that revival did not last. The price soon turned back down and optimism disappeared from the market.

If you zoom out further, you will see that the correction is even sharper. In July last year, XRP reached an all-time high of $3.65. Since then, the stock has fallen by about 63 percent. That puts a lot of pressure on sentiment.

Analyst Warns of ‘Death Zone’ in XRP

For many investors, the continued decline feels like a clear warning signal. The price has been falling for months and confidence is crumbling. Egrag Crypto looks at this differently. He does not rule out that the XRP price will fall even further. In fact, he is seriously considering a new downward movement.

The analyst points to a so-called ‘Death Zone’ between $0.64 and $0.77. According to him, there is an important support zone in that price area on the monthly chart. Should XRP fall back to $0.64 from its current level, that would mean an additional decline of approximately 53 percent.

That prospect sounds daunting and even frightening for many investors. Yet Egrag sees a unique buying opportunity in such a sharp correction.

According to him, the real increase only begins after investors have gone through a period of pain. He speaks of a ‘Face-Melting Phase’, an extremely powerful advance that, according to him, starts as soon as weaker hands have been squeezed out of the market. His message is clear: “There is no gain without pain.”