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Why XRP Could Slip Below $1 Tomorrow: The Bitcoin Crash Warning You Can't Ignore

  • You could lose 10%+ if XRP breaches $0.90 – act before the market reacts.
  • Bitcoin’s next support at $52,200 is the trigger point for XRP’s $0.87 danger zone.
  • Long‑term Wave 3 targets still hint at $7‑$9 upside, but the short‑term fight is fierce.
  • RSI divergence may turn a down‑move into a powerful buying signal.

You ignored the Bitcoin‑XRP link and now your portfolio may bleed.

Analyst TARA just mapped a direct line from a Bitcoin slide to a sub‑$1 XRP reality. By tying XRP’s price to Bitcoin’s next Fibonacci retracement, she paints a picture where a $52,200 Bitcoin dip drags XRP down to its .786 support at $0.87 – a level that also doubles as the .618 extension of the October 10 liquidation gap.

Why XRP’s $0.87 Support Mirrors Bitcoin’s Crash Potential

The crypto market still dances to Bitcoin’s drumbeat. When Bitcoin corrects, altcoins typically follow with a multiplier effect. TARA’s model uses classic Fibonacci ratios – .382, .618, .786 – to locate where XRP is likely to find footing or crumble. The $0.87 level isn’t arbitrary; it aligns with the .786 retracement of the last major BTC‑XRP divergence and serves as a psychological barrier for traders. Understanding these ratios is essential: the .382 resistance at $1.53 signals a short‑term ceiling, while the .618 extension (also $0.87) marks a deeper pull‑back zone. If Bitcoin breaches $52,200, the risk of XRP sliding into this extension rises sharply.

Sector Trends: How Bitcoin Volatility Shapes the Altcoin Landscape

Crypto investors are witnessing a broader trend: Bitcoin’s volatility is increasingly dictating the fate of high‑beta altcoins like XRP, Solana, and Polygon. When BTC spikes, capital flows into risk‑on assets, inflating altcoin prices. Conversely, a BTC dip triggers a risk‑off wave, pulling liquidity from these assets. In 2022, a Bitcoin correction from $45k to $30k pulled XRP from $1.10 to $0.78 within weeks. The pattern repeats: a Bitcoin move of 15‑20% often translates into a 25‑30% swing for XRP. This correlation underscores why monitoring Bitcoin’s support levels is a must‑have for any XRP position. Furthermore, regulatory headwinds on Ripple’s legal battles have muted some of the altcoin’s intrinsic upside, making it even more susceptible to Bitcoin’s price swings.

Competitor Analysis: XRP vs. Other Payment‑Focused Tokens

Ripple isn’t alone in the cross‑border payments niche. Stellar (XLM) and Cardano’s (ADA) emerging solutions are vying for the same market share. Unlike XRP, Stellar has a tighter correlation with the broader crypto market and less exposure to Bitcoin’s deep retracements because it often trades at lower beta. Cardano, while also a payment contender, benefits from a more diversified DeFi ecosystem that can cushion Bitcoin shocks. If Bitcoin dives, XRP’s downside risk exceeds that of XLM by roughly 40%, based on historical beta calculations. Investors looking for a payment token with a tighter risk profile may pivot to Stellar, but those betting on Ripple’s eventual regulatory win may tolerate the short‑term pain.

Historical Context: Past Bitcoin Crashes and XRP’s Reaction

Two notable episodes illustrate the pattern:

  • May 2021 Crash: Bitcoin fell from $58k to $30k (~48%). XRP dropped from $1.70 to $0.80 (≈53%).
  • November 2022 Correction: Bitcoin slipped from $21k to $16k (≈24%). XRP’s price moved from $0.90 to $0.62 (≈31%).
These moves show that XRP’s percentage decline typically outpaces Bitcoin’s, reinforcing the need for tighter risk controls when Bitcoin approaches key Fibonacci zones. The October 10 liquidation event mentioned by TARA created a price gap that now serves as a reference point for the .618 extension. History suggests that gaps formed during high‑volatility sell‑offs often become future support or resistance levels.

Technical Toolbox: Decoding Fibonacci, RSI, and Wave Theory

For readers unfamiliar with the jargon, here’s a quick primer:

  • Fibonacci Retracement: A tool that identifies potential support/resistance levels based on the golden ratio (23.6%, 38.2%, 50%, 61.8%, 78.6%).
  • RSI (Relative Strength Index): Measures momentum; values above 70 indicate overbought, below 30 oversold. A bullish divergence occurs when price makes a new low but RSI climbs, hinting at a reversal.
  • Wave Theory (Elliott Waves): Suggests market moves in five‑wave impulsive patterns followed by three corrective waves. TARA’s “Wave 3 macro target $7‑$9” aligns with the third upward impulse.
These concepts underpin the current analysis and help investors gauge entry and exit points.

Investor Playbook: Bull vs. Bear Scenarios for XRP

Bull Case: Bitcoin stabilizes above $65,800, allowing XRP to rebound to the $1.30 short‑term support and test the .5 resistance at $1.65. A clean break above $1.65 could trigger a back‑test bounce, offering a high‑probability entry for traders. Long‑term, if Ripple wins its legal battles, Wave 3 could catapult XRP toward $7‑$9, delivering multi‑digit returns.

Bear Case: Bitcoin breaches $52,200, dragging XRP into the .786 zone at $0.87. Failure to hold the $1.00 psychological level would expose the altcoin to a final wave down toward $0.90‑$1.09, as warned by CasiTrades. In such a scenario, investors should consider stop‑losses near $0.85 and allocate capital to less Bitcoin‑correlated assets.

Bottom line: Keep a close eye on Bitcoin’s 52‑week low and the Fibonacci retracements that TARA highlighted. Your XRP position’s fate hinges on whether Bitcoin respects the $52,200 floor or slides deeper.

#XRP#Bitcoin#Crypto Analysis#Technical Levels#Investment Strategy