TL;DR
- XRP dropped from $0.66 to around $0.56, with a bearish pattern indicating a further downtrend.
- Some analysts remain optimistic, predicting a rebound and possible rise to an all-time high within a year.
XRP Lost the Momentum
Ripple’s XRP was among the best-performing cryptocurrencies at the end of last month, with its price rallying to a four-month high of $0.66. However, the bears took control a few days ago, and now the token is worth around $0.56 (per CoinGecko’s data), representing a 7% decrease on a daily scale and 14% since its local top.
Some prominent industry participants speculated that XRP might be poised for a further slump. Veteran trader Peter Brandt is one of those, observing that the XRP/BTC pair has recently headed south. Such a decline means that Ripple’s native token has been underperforming compared to the primary cryptocurrency.
Additionally, Brandt suggested that the XRP/BTC price chart resembles a “multi-year complex” head and shoulders pattern. It consists of three peaks: a higher peak (the “head”) between two lower peaks (the “shoulders”).
The pattern is generally considered a bearish signal for the price of XRP, indicating the beginning of a potential downtrend.
“If this chart penetrates the lower support line then all X accounts with XRP initials attached will slowly disappear to never again be seen again,” Brandt concluded.
The Bullish Scenario
It is worth noting that other analysts remained optimistic despite the latest price crash. The X user Dark Defender, for example, assumed that the retreat to around $0.57 is the first resistance level, with the second being $0.53. The trader claimed that XRP’s bull path could continue once it breaks $0.6649. Recall that the last time the token was trading so high was in mid-March 2024.
Others were even more bullish. Ash Crypto – an X user with over one million followers – predicted that XRP’s valuation could skyrocket in the $3-$5 range in the next 12 months. However, the trader did not base the forecast on important indicators or technical analysis tools.
Speaking of essential metrics, one should mention the XRP Relative Strength Index (RSI), which has been experiencing a downfall lately. It measures the speed and change of price movements, identifying whether the asset is overbought or oversold. The RSI varies from 0 to 100, with a ratio above 70 indicating that a price correction could be incoming. Currently, the index points at 33.
The post Ripple (XRP) Price Plunges by 14% in 3 Days: More Pain Incoming or Signs of Reversal? appeared first on CryptoPotato.