XRP Analyst Warns of Possible Dip to $2.65 Before Major Breakout Levels

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Ripple’s XRP has seen noticeable price swings in recent weeks, sliding from its all-time high to below $3, marking a decline of nearly 9%. With this drop, traders and the wider XRP community are keeping a close eye on the charts.

Adding to the caution, popular technical analyst Egrag Crypto has suggested that the token could dip as low as $2.65 before attempting a major breakout.

XRP: Warning of a Dip to $2.65

On August 18, XRP jumped from $2.97 to $3.10 as trading volume jumped to 131 million, doubling its buying pressure. But soon after, XRP slipped from $3.04 to $2.99 in a sharp drop.

According to analyst Egrag, the key level to watch now is $2.90. If XRP closes below this point on the 4-hour chart with a strong red candle, it could signal the completion of a five-wave structure.

In that case, the price may slide further toward $2.65, which Egrag highlights as the next possible support.

Backing the Egrag analysis, top analyst Ali Martinez also cautioned about XRP’s downside risk. He noted that if XRP fails to hold above $3.30, the price could slip toward $2.60 soon.

XRP’s Path to $3.65

While the warning is serious, the chart also outlines a clear path for recovery. The first step for XRP would be regaining the $3 mark, which would indicate strength returning to the market.

Beyond that, $3.13 and $3.20 are highlighted as checkpoints that would confirm bullish momentum. The real excitement begins if XRP breaks above $3.45.

According to Egrag, this would put the token on track for a push to $3.65, a level that could even lead to a new all-time high.

Market Activity Signals Bullish

Egrag also points out that trading volume has climbed above the moving average, a sign that market activity is heating up. This suggests traders are positioning themselves for a major move, whether upward or downward.

On top of that, any positive news around a potential XRP ETF approval could add extra fuel to the rally and push prices even higher.