After its meteoric rise in November, the XRP price now faces a significant downside risk.
The third-largest cryptocurrency is already trading 15% below its local high and is set to test key support levels, which could result in a further decline.
The XRP price correction comes as smart money investors appear to be rotating capital into high-potential meme coins.
Large-cap Ethereum meme coins like Pepe, Mog Coin, and Floki are showing impressive resilience, while experts predict 10- to 100x returns from new low-market-cap tokens like Slap.
XRP price drop: time to sell or buy?
XRP holders risk seeing their profits evaporate amid an impending price crash.
The token appears poised to retest the $2.25 range for the sixth time in less than a week. A break below could result in a drop below the $2 mark.
A lower-high structure on the daily chart with decreasing volume also supports the bearish thesis.
Prominent cryptocurrency trader Ninja, with over 233,000 X followers, is now short on XRP and expects it to test the $1.40 – $1.70 range next week. It projects that the token could recover from the upper or lower limit of the range.
However, this means that XRP price could see another 30% to 40% correction.
All eyes are now on the $2.25 support level, especially for XRP spot holders and swing traders. For example, 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.
As such, experts are projecting 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 the ouster of SEC Chairman Gary Gensler, who will now be replaced by Trump’s pro-cryptocurrency pick Paul Atkins.
The new SEC administration could settle or withdraw its lawsuit against XRP and could also approve XRP spot ETFs, boosting institutional demand. Ripple President Monica Long has already revealed strong demand for the company’s upcoming RLUSD stablecoin, which could also boost the value of XRP by association.
Despite XRP’s optimistic long-term prospects, the token faces a huge downside risk towards the end of the year, especially as smart money investors rotate their capital back into meme coins.
Ethereum Meme Coins In High Demand, Analysts Predict High Returns for Catslap
Ethereum meme coins are showing impressive resilience. While meme coins Dogecoin, Shiba Inu and Solana are in deep red territory on Monday, Pepe and Floki are in green. Mog Coin also made Popcat the largest cat-themed meme coin today.
Another ERC-20 cat meme coin, Slap (slap)seems poised for a bullish breakout.
The SLAP price is currently trading at almost 5.750% of its listing price, sitting at $0.0068 after just 3 weeks.
However, it is moving within a bullish wedge and a break from the upper trendline could result in a new all-time high.
As such, the meme coin is generating a lot of interest from whales, with the purchase of 10 ETH being common.
Even the trading house Jump Trading is bullish on Catslap and has bought almost $500 thousand worth of the meme coin.
Considering that the token has been inspired by the viral “slapping cat” meme, it is no surprise that it is receiving strong support from the community. Its staking protocol, social media accounts, and number of token holders continue to rise despite the volatile price action.
Catslap’s deflationary token supply, which is a result of its buyback program and burn events, has also attracted smart money whales.
Therefore, it is not surprising that analysts are optimistic about SLAP’s upside potential, with many predicting higher returns than those of major players like XRP.
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