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As XRP heads toward a potentially historic surge, fears are spreading across the market amid growing speculation that a final plunge to the $0.50 level could push investor sentiment to the extreme.
According to cryptocurrency media outlet The Crypto Basic on February 7 (local time), analysts suggest that XRP could undergo a deep correction phase before entering a full-fledged bullish trend, aimed at shaking out unrealized profit-taking supply and excessive leverage. Analysts warn that if current support levels break, a so-called final shakeout could occur, driving prices down to the psychological low of $0.50 and forcing out retail investors.
This bearish scenario is based on a technical pattern in which XRP, after hitting recent highs, encounters strong resistance followed by heavy selling volume. Some experts note that just before previous major bull markets, there were always unexpectedly sharp declines, suggesting that the $0.50 range could become the strongest long-term buying zone. This view aligns with a phase in which overall liquidity across the altcoin market temporarily contracts alongside heightened Bitcoin (BTC) volatility.
Whale activity is also cited as a factor intensifying downside pressure. On-chain data indicates that some large addresses have transferred holdings to exchanges to realize profits, which experts interpret as position adjustments in anticipation of further declines. Jeff Park, Head of Alpha Strategies at Bitwise, explained that a healthy correction to cool market overheating is inevitable, and only investors who can withstand the volatility will emerge as leaders of the next rally.
Despite institutional tailwinds such as the proposed U.S. crypto market structure bill CLARITY, short-term supply-demand imbalances could still trigger price declines. While growth in the XRP Ledger (XRPL) ecosystem is clearly a long-term positive, high funding rates and a surge in open interest in the futures market pose risks of a liquidation domino effect during downturns. Analysts predict that if a decline to $0.50 materializes, unhealthy leverage will be fully flushed out, marking the true opening of a sustained bull market.
Ultimately, XRP appears to be enduring a painful period of consolidation, coiling tightly for a massive leap forward. The dramatic $0.50 price level could represent a once-in-a-lifetime opportunity for those who overcome fear, but a harsh trial for unprepared investors. Market attention is now focused on whether XRP can complete the decline-to-$0.50 scenario and write a new legend of a historic rebound.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses incurred based on this content. The information provided should be interpreted solely for informational purposes.*