The volatility of the cryptocurrency market is often reflected in the assets that people choose to invest in, and XRP appears to be a shining example of this. The crypto market has gone through not one, not two, but four bullish stages since last year. And XRP has failed to achieve long-term growth in all of them.
On April 25, Ripple (XRP) maintained its downward trend, plunging 5.5 percent to $0.64, its lowest level since February 28.
The drop raised the chances of a bearish reversal pattern known as a descending triangle forming. While these patterns normally appear during a downtrend, they usually signal the end of an upswing when they appear after a big bullish advance.
Since April 2022, XRP Price has been trading in a similar trading channel, which is defined by two trendlines: a lower horizontal and an upper downward sloping trendline.
Five weeks after testing the top trendline as resistance, XRP is pulling back toward the support trendline, which also coincides with the 50-week exponential moving average (50-week EMA; the blue wave).
If a breakdown happens below the triangle’s lower trendline, accompanied by increasing volumes, XRP’s price might fall to a level equal to the maximum distance between the structure’s upper and lower trendlines, as depicted in the chart above.
This would put XRP at $0.19, or 70% lower than its current price on April 25.
Also Read : Bitcoin Steep Correction Is On Horizon! BTC Price To Bottom At This Level
Correlation with BTC
The pessimistic forecast for XRP comes in the wake of a similar selloff in Bitcoin (BTC), Ether (ETH), and the rest of the cryptocurrency market. As of April 25, the correlation between Bitcoin and XRP was 0.84. A perfect score of 1 means that the two assets move in perfect unison.
Furthermore, according to Mark Newton, a technical strategist at Fundstrat, Bitcoin might fall to its January lows below $33,000. “Without too much problem,” he continued, BTC’s initial decline to $36,300 “could lead to a full retest of $32,950.”
XRP might fall further as a result of its positive association with Bitcoin, triggering its descending triangle breakdown setup.
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Source: https://coinpedia.org/price-analysis/xrp-price-on-verge-of-major-crash-in-q3/