XRP Price Analysis: Expert Warns of Potential 56% Drop to $0.80 Support Level

Source: CryptoNewsNet Original Title: Market Expert Shares Why XRP Is at Risk of a 56% Drop to $0.80 Original Link: https://cryptonews.net/news/analytics/32204622/

Market Analysis and Price Risks

Amid a wave of uncertainty in the crypto market, recent analysis has identified the possibility of further XRP declines to multi-month lows.

XRP again failed to reclaim the $2 price level, as an early rally to an intraday high of $1.91 ended in a price rejection. It has since relinquished all gains to trade at $1.86.

With a strong start to 2025, XRP has corrected by over 40% from its July high of $3.66 and trades at a YTD loss of 19%.

Downside Risks Identified

Veteran analyst Ali Martinez identified in a recent analysis that the coin could fall by 56% to $0.80, a price last seen over a year ago. He attached on-chain and technical analysis to back his speculations.

Martinez’s analysis centers on several key factors:

Dwindling Network Activity: Network activity on the XRP Ledger has cooled considerably, with daily active addresses falling to 38,500. It dropped 16% from 46,000 daily users earlier in December, signaling growing disinterest and a lack of participation.

Whale Selling Pressure: XRP held by whales has dropped by 40 million tokens, as these large holders are either taking profits or cutting losses. This activity adds pressure to the token supply and weakens demand, while dampening market sentiment and signaling a lack of confidence among large holders.

Key Support Levels at Risk

Martinez noted that XRP could break below a key support area if the selling momentum persists. Specifically, it could fall below the $1.77 demand zone, paving the path for further corrections.

XRP recently tested this support when it dropped to an intraday low of $1.77 on December 19. However, bulls stepped in to defend the area aggressively.

Should selling pressure continue to mount, a breach of the $1.77 zone would see XRP fall towards the next crucial support level at $0.80. Martinez had identified this support using the UTXO Realized Price Distribution (URPD) metric.

If selling pressure continues, XRP risks losing the $1.77 support. A breakdown there opens the door to the next major support zone near $0.80.

Market Consensus

Martinez is only one of multiple analysts predicting further XRP corrections. Other market observers have also noted that the broader XRP picture remains bearish, with lower prices likely unless the asset sustains a channel breakout.