XRP at Risk: Crypto Analysts Warn of Potential 10% Drop Amid Regulatory Uncertainty

• Why Is XRP Facing a 10% Drop Threat?
• Technical Signals Flash Red: What’s Next?
• Regulatory Fog and ETF Hopes: A Double-Edged Sword
• FAQ: Your XRP Questions Answered

XRP is teetering on the edge of a critical support level, with technical indicators suggesting a possible 8-10% drop to $2.50. Regulatory ambiguity and compressed liquidity are amplifying market tension, though buyer concentration at lower levels could spark a rebound. Here’s what traders need to watch.

Why Is XRP Facing a 10% Drop Threat?

XRP’s price action has turned precarious as it hovers NEAR the $2.75 support level—a zone tested multiple times in recent weeks. According to TradingView data, the token’s failure to hold this level could trigger a slide toward $2.50, aligning with a Fair Value Gap (FVG) and the 50-61.8% Fibonacci retracement zone. "This isn’t just about price levels; it’s a psychological battleground for traders," notes a BTCC market analyst. On-chain data from Glassnode reveals heavy buyer interest between $2.45 and $2.55, which might cushion the fall.

Technical Signals Flash Red: What’s Next?

The Hashdex Nasdaq ETF inclusion briefly buoyed XRP, but momentum has stalled. Key red flags:

• Fragile Support: Repeated tests of $2.75 weaken its reliability.
• Liquidity Squeeze: Order books show extreme compression, often preceding volatile moves (Source: Sistine Research).
• CVD Imbalance: The 90-day Cumulative Volume Delta still favors sellers despite minor buyer spikes.

Historically, such conditions precede sharp reversals—either upward or downward. "It’s like watching a coiled spring," quipped one trader on X (formerly Twitter).

Regulatory Fog and ETF Hopes: A Double-Edged Sword

While REX/Osprey’s XRP ETF saw a strong $38M debut, the delayed Franklin Templeton decision (now November 14) keeps markets on edge. "ETF HYPE is baked into current prices," warns Pelin Ay, an independent analyst. A break above $2.90 could invalidate bearish forecasts, but until then, the path of least resistance leans downward.

FAQ: Your XRP Questions Answered

How low could XRP drop?

Analysts identify $2.50 as the next major support, with a 8-10% decline from current levels.

What would trigger a rebound?

A hold above $2.75 or positive regulatory news (e.g., ETF approvals) could reignite bullish momentum.

Is this a buying opportunity?

Buyer density at $2.45-$2.55 suggests potential accumulation, but caution is advised amid regulatory uncertainty.