XRP has been at the center of intense market speculation following its dramatic price movements over the past few months. As one of the most widely watched cryptocurrencies, XRP saw a notable breakout in late 2024 after a prolonged consolidation phase.
This surge took the token to new highs, igniting discussions about its long-term potential and the possibility of continued bullish momentum. However, analysts are now warning that the asset may face a major correction before any further gains can be realized.
The recent price decline has drawn both optimism and caution among investors, with some speculating that a retracement is likely in the near term. Given its historical performance, XRP could be mirroring past market cycles, which have often included sharp pullbacks before new highs are reached.
Also Read: Here is When the SEC Can Drop the XRP Lawsuit and Other Crypto Cases, Lawyer Reveals
Expert Predicts 52% Crash Before a Potential Rebound
According to cryptocurrency analyst Harold_123 on TradingView, XRP could be headed for a steep decline in the coming weeks. The expert shared his forecast in early February, warning that the token might experience a correction of up to 52%.
Given XRP’s press-time price of $2.50, such a drop would see it trade as low as $1.25 in the near term, a level that aligns with key Fibonacci retracement levels.
Source: Harold_123 & TradingView
The prediction is based on a comparison between XRP’s price movement in late 2024 and early 2025 and its last major bull cycle in 2017. The analyst highlighted that both rallies followed a prolonged period of triangular consolidation before breaking out to higher levels.
If history repeats itself, XRP could undergo a significant retracement before resuming its upward trajectory. Chart analysis suggests that XRP has already hit a key resistance level near $3.31, aligning with previous price action.
Additionally, Fibonacci retracement levels indicate that the next critical support zone sits around $1.61, with further downside potential to $1.25. A correction toward this level would align with historical patterns, potentially leading to another accumulation phase before the next leg up.
Regulatory Developments Could Shape XRP’s Trajectory
One key factor that could impact XRP’s price movement is the evolving regulatory landscape. With the recent leadership changes at the SEC and the resolution of Ripple’s legal case, there is renewed optimism about the future of XRP.
The uncertainty surrounding regulatory scrutiny has long been a limiting factor for the token’s growth, but a favorable outcome could open doors for greater institutional adoption.
Additionally, the resignation of SEC Chair Gary Gensler has fueled speculation that the new crypto-friendly leadership could put a decisive end to the Ripple lawsuit. If Ripple secures a favorable ruling, XRP could see increased legitimacy within financial markets, potentially driving its value higher in the long run.
Despite the projected downturn, the analysis also presents a long-term bullish outlook. The trader noted that after an expected correction and consolidation period, XRP could be poised for another major rally.
Fibonacci projections suggest that a full-cycle breakout could see the token rise to as high as $26.69, a price level derived from previous market cycles.
Also Read: XRP Rich List: Number of XRP Wallets Increase Rapidly Following THIS
