- A crypto analyst believes the XRP upward momentum is still intact.
- The analyst predicts XRP could drop to $1.7 in a short-term price movement.
- Investors’ XRP expectations go beyond technical analysis.
A well-known cryptocurrency analyst on X believes the XRP momentum upwards is still strong in the higher time frame.
However, he thinks there might be a potential short-term pullback, based on a few critical observations, especially the recent price rejection, which saw the altcoin drop below $2.5 on February 18.
XRP started a significant price recovery after tumbling to $1.768 on February 3. The altcoin’s rebound was impressive, leaving most investors confident that the trend could continue to higher price levels.
That move faced resistance at $2.832, where he noted that the altcoin hit a local high and met selling pressure.
Related: Barring SEC Uncertainty, RSI Indicator Signals an Imminent Rebound For XRP
Analyst Flags Potential XRP Drop to $2.2 or Even $1.77
A significant pullback resulted in XRP’s recent price drop, leading the analyst to highlight the possibility of the altcoin dropping lower, potentially reaching for lower support.
For example, the crypto analyst noted that XRP’s price could drop to $2.2, possibly crashing to $1.77 if the bears stay in charge. Even so, XRP’s overall outlook remains bullish.
XRP was one of the best-performing top cryptocurrencies early this year when the altcoin gained about 70% during the New Year rally. January’s surge was crucial in XRP’s history as it allowed the altcoin that faces legal challenges to achieve a new all-time high, reaching a milestone and another landmark for the cryptocurrency.
Profit-Taking and Fundamentals Key for XRP Price
Most analysts consider the recent pullback a regular occurrence, with investors expected to take profit after such an impressive rally.
However, the fundamental issues surrounding XRP are significant to how the altcoin’s price develops. One such issue is the litigation between Ripple and the SEC. Many XRP investors are attentive to the developments surrounding the case, knowing that a favorable outcome for Ripple would have a bullish effect on XRP’s price.
Related: Whales Accumulate 60 Million XRP In What Might Be A Positive Signal
Another factor that could affect XRP’s price is its potential inclusion as one of the digital assets in the proposed US crypto stockpile. Including XRP in the list would signal the potential for notable adoption and boost investors’ sentiment toward the cryptocurrency.
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