TL;DR

Alongside most of the market, Ripples native cryptocurrency has posted a violent price correction that has taken it south by over 20% since its recent all-time high marked just a few weeks back. Analysts are now warning that the asset could be on the verge of another breakdown as it lost a crucial support level.

Deeper Correction Ahead?

Although XRP has recovered some ground since the plunge this morning to $2.72 (a three-week low), the cryptocurrency is still down by over 10% weekly. The aforementioned key support level that has been breached to the downside is $3.

Numerous analysts believe this line would play a pivotal role in determining XRPs near-term future. Dropping and closing below it, as Ripples cross-border token has done over the past 24 hours, could spell further trouble. In yesterdays warning article, CryptoPotato cited data from Ali Martinez, who went even further by providing more precise selling and re-entry points for XRP.

Consider shorting XRP near $2.98 with a target of $2.48 and a stop at $3.18. Alternatively, setting up buy orders between $2.40 and $2.20 could position you well for the next rebound.

Martinez doubled down on his prediction earlier today that a price drop to $2.40 is in XRPs future, basing his analysis on the TD Sequential metric.

$XRP continues to pull back after the TD Sequential flashed a sell signal on the 3-day chart. The next key support level to watch is $2.40! pic.twitter.com/UV1qqdNJV7

Not the Only One

Michaël van de Poppe, another analyst with more than 800,000 followers on X, also weighed in on the matter, highlighting the importance of losing the $3 level. His conclusion aligns with Martinezs target of $2.40 and a subsequent bounce-off.

$XRP made a nice high, but it was a tricky one.

Level lost = deep correction, which we currently have.

Deep correction = interest around $2.40-2.60.

From there, we likely go up again. pic.twitter.com/FZBs5reJNO

Cryptowzrd also noted that XRP has closed bearish, even against BTC. However, the market observer said Ripples token will eventually stage a quick recovery rally once Bitcoins dominance starts to decline again. Recall that the metric dropped from over 64% (on CoinGecko) to under 59% in July during the altcoins run. However, it has jumped past 60% once again as the alts got hammered in the past few days.

It goes without saying, but this article is not financial advice. Also, its not meant for full-time XRP believers (HODLers) who want to ride the wave for years. Instead, traders and those wanting some adrenaline can use it as a reference, as its based on the opinions of some of the most popular crypto analysts.

When it comes to actually selling your crypto bags, you can check this guide for more insights.