Will XRP Price Breach $0.50 Again? Analyst Flags Weak Buyers Support

XRP price showed an insignificant gain of 0.07% during the U.S. trading session on Tuesday. For over a week, the Ripple coin formed a series of such neutral candles in the daily chart, indicating no clear initiation from buyers or sellers. However, this consolidation below a multi-year resistance hints at the pivotal moment for this asset for a major breakout or reversal.

XRP Price Faces Major Breakdown as Analyst Points to Weak Buyer Support

Amid the two-month consolidation, the XRP price showcased several failed attempts to breach the overhead resistance trendline of a symmetrical triangle pattern. Since September 2021, this pattern’s two covering trendlines have acted as dynamic resistance and support to squeeze the XRP price spread into a narrow range. 

Despite the recent pullback from the overhead trendline, the XRP price avoiding a significant correction highlights strong buyer confidence. The constant attack to breach overhead trendlines could weaken the resistance and offer a decisive breakout shortly.

Crypto analyst JACKIS shared a similar bullish outlook in a unique and intriguing manner with his 136.7K followers on X (formerly known as Twitter). In his tweet, he warned of an impending XRP price drop, stating:

The breakdown will be violent. I highly recommend hedging yourself once this crypto coin $XRP crashes

He further added, “The trendline is super weak & the distribution is too long.

However, upon closer inspection, the attached image reveals that JACKIS had posted an inverted XRP price chart. When flipped to its correct orientation, it actually suggests the opposite—a potential breakout from the long-term resistance trendline, signaling a possible rally toward the $1 mark.

The breakdown will be violent. I highly recommend hedging yourself once this crypto coin $XRP crashes

The trendline is super weak & the distribution is too long pic.twitter.com/YeKc6t1ms1

— JACKIS (@i_am_jackis) September 23, 2024

Whale Selling May Stalls $0.60 Breakout

According to Santiment data, the large wallet addresses containing 100 million to 1 billion XRP coins (yellow line) have notably declined over the past year. The whale distribution often coincides with major market tops or prolonged corrections in an asset.

Therefore, if the recent reversal breached the 200-day EMA slope at $0.55, the sellers could drive another bear cycle within a triangle pattern. A post-breakdown fall could plunge the asset 20% to retest the bottom support trendline at $0.4.

Moreover, the SEC’s potential appeal could prolong the legal battle and delay XRP price sustainability at higher levels.

Conclusion

Considering the long-extended consolidation in XRP price, the potential buyers should focus on being reactive rather than proactive. A decisive breakout above the triangle resistance is crucial to confirm the end of the accumulation phase. Without it, the sideways movement could persist, potentially leading to another reversal.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.