Analyst Warns of XRP Price ‘Bloodbath,’ But Here’s Why Ripple’s Token Holders Shouldn’t Worry
Comments from Swyftx lead analyst Pav Hundal have ignited concerns among XRP investors about a potential “bloodbath” scenario for Ripple’s token.
Hundal, in an interview, explained the potential risks associated with the current state of XRP leverage and Bitcoin dominance. However, optimism remains within the XRP community, as there are reasons why the token could still achieve key milestones soon.
What you'll learn 👉
Analyst Identifies Risks for XRP Bulls Amid Bitcoin Dominance
Pav Hundal highlighted the dangers posed by increased Bitcoin dominance, noting its potential to trigger a shift of capital from XRP to Bitcoin. This reallocation, according to Hundal, could lead to a wave of liquidations for leveraged XRP positions.
The expert noted that it would be dangerous for highly leveraged XRP bulls if Bitcoin dominance increased again. Hundal also observed that XRP’s open interest has doubled compared to levels seen in 2021, suggesting heightened speculative activity.
He noted a rise in funding rates across multiple exchanges, with retail investors seemingly favoring leveraged long positions on XRP despite declining prices. While Binance’s funding rates remain moderate, Hundal warned that other platforms indicate a heated market.
However, he suggested that stability in Bitcoin’s price could alleviate market anxiety and potentially boost spot trading volumes for XRP.
XRP’s All-Time High Still a Target?
Despite the warning signs, Ripple’s XRP retains strong potential, according to market trends and historical performance. The token has yet to surpass its all-time high (ATH) from 2018, a milestone many expect during an altcoin market rally.
Comparisons with Ethereum (ETH), which also has not broken its previous ATH, underscore the broader trend of delayed price peaks in the current cycle.
This sentiment is further bolstered by the steadfast support of the XRP community. Retail investors remain a driving force, continuously backing the token through market swings.
Read also: Here’s Why Solana (SOL) Price Could Be Set for a Rally to New All-Time Highs
Alternate Views Support Bullish Momentum for XRP
Adding to the optimism, an update from crypto analyst EGRAG CRYPTO suggests that XRP is entering what he calls a “Face-Melting Phase.”
In a tweet, the analyst highlighted key price levels, identifying $2 as a critical support zone. He emphasized the importance of XRP maintaining closures above this threshold across multiple timeframes to secure upward momentum.
EGRAG CRYPTO’s assessment also touched on a potential price dip to $1.20 or $1.00.
However, he viewed such a scenario as an opportunity for accumulation rather than a setback. “You’ll never see it under $1 again in your lifetime—or your grandkids’ lifetime,” he asserted, further energizing the XRP community.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
