Analyst Predicts XRP Price Crash to $2 as Open Interest Falls, Death Cross Nears

XRP price dropped for the third consecutive day as the crypto momentum faded. Ripple token plunged to a low of $2.3980, down by 35% from the year-to-date low. A popular analyst believes that the token may plunge below $2. This view is emphasized by the upcoming death cross and falling open interest.

XRP Price is at Risk of Further Downside as Death Cross Nears

The daily chart reveals that the XRP price had its worst day last Friday as it plunged by as much as 37%. XRP plunged to a low of $1.77, down by 52% from its highest point this year. It then bounced back and hit the resistance at $2.6425.

The coin has now pulled back to $2.4, which is a notable level as it has coincided with the ultimate support of the Murrey Math Lines tool. Also, the MACD indicator has dropped below the zero line, while the Relative Strength Index (RSI) has moved closer to the oversold level. 

Worse, the coin is about to form a death cross pattern as the 50-day and 200-day Exponential Moving Averages near their crossover. This pattern normally leads to more downside as it means that bears are in control. 

Therefore, the most likely Ripple price forecast is bearish, with the initial target being at $2. This target is about 16% below the current level. It also coincides with the extreme overshoot level of the Murrey Math Lines indicator. This view is supported by what Ali Martinez, a popular analyst noted 

The bearish XRP price forecast will become invalid if the coin rises above the important resistance level at $2.6425. Such a move will point to more gains, potentially to the major S&R pivot point of the Murrey Math Lines.

Ripple Open Interest is Falling as Demand Wanes

The XRP price has struggled in the past few days as investors come to terms with the substantial liquidations that happened on Friday. These liquidations jumped to $610 million and were the most painful ever. 

As a result, there are signs that XRP’s demand has waned. For example, the open interest has plunged to $4.05 billion, down from $9 billion before the recent crypto market crash. Falling OI is a sign that an asset’s demand has continued to wane. 

The same is happening with the volume in the spot market. Its volume on Thursday plunged to $6.8 billion, down from $23 billion last Friday. 

Still, XRP price has some potential catalysts that may push it higher in the near term. One of the catalysts is the upcoming XRP ETF approvals by the SEC. Additionally, the Ripple USD (RLUSD) stablecoin is nearing the $1 billion asset.