2 weeks ago
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After its meteoric ascent in November, the XRP price now faces major downside risk.
The third-largest cryptocurrency is already trading 15% below its local top and is set to test key support levels, which could result in a larger dip.
The XRP price correction comes as smart money investors appear to be rotating capital to high-upside meme coins.
Large-cap Ethereum meme coins like Pepe, Mog Coin and Floki are showing impressive resilience while experts are predicting between 10x and 100x returns from new low market cap tokens like Catslap.
XRP Price Dip – Time To Sell or Buy?
XRP holders are at risk of seeing their profits evaporate amid an impending price drop.
The token appears poised to retest the $2.25 range for the 6th time in less than a week. A breakdown below could result in a drop below the $2 mark.
A lower-high structure in the daily timeframe with declining volume also supports the bearish thesis.
Prominent crypto trader Ninja, with over 233k X followers, is now short on XRP, expecting it to test the $1.40 – $1.70 range in the coming week. He projects that the token could bounce back from either the upper or lower boundary of the range.
However, this means that the XRP price could see another 30% to 40% correction.
thank me later$XRP pic.twitter.com/hsrUAJksLL
— Ninja (@Ninjascalp) December 7, 2024All eyes are now on the $2.25 support level, especially for the XRP spot holders and swing traders. For instance, crypto analyst Ali Martinez believes that another successful retest of the level could result in new highs for the token, potentially even a rally to $4.40.
$XRP: 3 consecutive bull pennants! We should all be praying for a retest of $2.25 to buy the dip and target $4.40! pic.twitter.com/KgXnM929yk
— Ali (@ali_charts) December 9, 2024As such, experts are projecting a strong retail demand for XRP following Ripple CEO Brad Garlinghouse’s interview on CBS News’ 60 Minutes. They also anticipate regulatory clarity for XRP following Chair Gary Gensler’s ouster from the SEC, who is now set to be replaced by Trump’s pro-crypto pick Paul Atkins.
The new SEC administration could settle or withdraw its lawsuit against XRP and could also approve spot XRP ETFs, boosting the institutional demand. Ripple President Monica Long has already revealed a strong demand for the company’s upcoming stablecoin RLUSD, which could also boost’s XRP value by association.
Despite XRP’s rosy long-term outlook, the token faces major downside risk towards the end of the year, especially as smart money investors rotate their capital back to meme coins.
Ethereum Meme Coins In High Demand, Analysts Tip High Returns For Catslap
Ethereum meme coins are showing impressive resilience. While Dogecoin, Shiba Inu and Solana meme coins are in deep red territory on Monday, Pepe and Floki are in the green. Mog Coin also flipped Popcat to become the largest cat-themed meme coin today.
Another ERC-20 cat meme coin, Catslap (SLAP), appears poised for a bullish breakout.
The SLAP price is currently trading nearly 5,750% from its listing price, standing at $0.0068 after just 3 weeks.
However, it is moving inside a bullish wedge and a breakout from the upper trendline could result in a new all-time high.
As such, the meme coin is seeing strong whale interest, with 10 ETH buys a common occurrence.
Even proprietary trading house Jump Trading is bullish on Catslap and has purchased nearly $500k worth of the meme coin.
Considering that the token has taken inspiration from the viral “slapping cat” meme, it is no surprise that it is seeing strong community support. Its staking protocol, social media accounts and token holder count continue to surge despite the volatile price action.
Catslap’s deflationary token supply – which is a result of its buyback program and burn events – has also appealed to smart money whales.
It is therefore no surprise that analysts are bullish on SLAP’s upside potential, with many predicting higher returns for it than the big caps like XRP.
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