Bearish pattern warning signals a 50% drop in XRP price.
Loose Cannon: XRP's Rollercoaster Year
The cryptocurrency world has been a wild ride this year with XRP dropping a staggering 37% from its peak in November.
XRP, often referred to as XRP2.71%, is currently trading at $2.15, harking back to the levels seen on New Year's Day. The coin appears to be teetering on the edge of a substantial plunge, hinting at a potential 75% crash to $0.52.
Perusing the network's health indicators, it's clear sailing isn't on the horizon. Active addresses have plummeted from a high of 612,000 in March to a dismal 16,000 today. Moreover, there are clear signs of whale capitulation. Addresses carrying between 10 million and 100 million coins now hold 7.53 billion XRP, down from a hearty 7.8 billion last week.
The recently debuted Teucrium 2x Long Daily XRP ETF seems to be losing steam, with its assets under management diving from $110 million in May to a mere $102 million.
Donald Trump, Elon Musk sparks memecoin frenzy as KBBB rallies to $53m market cap
XRP's Troubled Technicals
The daily chart reveals XRP peaked at $3.40 in November following Donald Trump's election. Since then, it's taken a nosedive, despite a slew of promising developments such as the resolution of the SEC vs Ripple case, the Hidden Road acquisition, and ETF applications.
XRP has slipped below the 50-day Exponential Moving Average, suggesting bears are in control. The coin has also shaped a descending triangle pattern, characterized by a horizontal support level and a descending trendline. The lower boundary of this pattern is at $1.9625, a level that has proven remarkably resilient since November. The descending trendline links the swing highs from January 16, March 1, and March 13.
Descending triangles often precede bearish breakouts. Based on the pattern's height, the projected price target is a 42% decline from the $1.9625 support, implying a potential drop to $1.1270.
Limping AAVE cumbersome momentum
Whales have been accumulating AAVE, offering a glimmer of hope for the coin, although its momentum shows signs of weakening.
Enrichment Insights:
- XRP's bearish run could be attributed to various factors. Technical data shows it's trapped within a descending triangle, a pattern often signaling a breakout to the downside. The RSI and the death cross, along with regulatory uncertainty and market sentiment, have increased cautiousness among traders and institutional investors.
- If XRP breaches its support levels, analysts predict a drop below $2, with potential targets ranging from $1.70 to $1.79. However, some remain hopeful that positive regulatory resolutions and an improved market sentiment could push XRP prices to $3 or beyond.
- The overall cryptocurrency market is heavily influenced by Bitcoin's movements. Failure of Bitcoin's support levels could magnify XRP's weakness.
- Despite the resolution of the SEC vs Ripple case, the Hidden Road acquisition, and ETF applications, XRP has struggled, with its price dropping significantly and teetering on the edge of a substantial plunge.
- The daily chart reveals that XRP is currently trapped within a descending triangle, a pattern often signaling a breakout to the downside and hinting at a potential 42% decline from the current support level, implying a potential drop to $1.1270.
- Whales have been accumulating AAVE, offering a glimmer of hope for the coin, but its momentum shows signs of weakening.
- In the crypto finance world, investments in memecoin KBBB have rallied, reaching a $53 million market cap, while the Teucrium 2x Long Daily XRP ETF seems to be losing steam, with its assets under management diving from $110 million to $102 million.
