Bearish Pattern May Lead XRP Under $0.50

Bearish Pattern May Lead XRP Under $0.50

The XRP price forms a bearish pennant pattern, will it break below 0.5 psychological support?

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Over the past two months, XRP price has been on a notable downward trajectory. This downtrend has been particularly significant, resulting in Ripple losing nearly 73% of its gains. These gains had been previously accrued during its partial victory against the SEC. Unfortunately, the subsequent period witnessed a reversal of fortunes, with the coin retracing most of these gains. Plunging back to the psychological mark of $0.50, will XRP make a comeback to $1?

Also Read: Ripple Joins Hands With Elon Musk’s SpaceX Partner In XRP Project

Pennant Breakout Might Plunge XRP 

  • The pennant pattern formation signals a downtrend continuation for XRP traders.
  • A bullish breakout above the triangle pattern may trigger a significant upswing in XRP price.
  • The intraday trading volume in the XRP is $496 Million, indicating a 32.56% loss.

XRP Price PredictionSource: Tradingview

A bearish pennant pattern is becoming discernible when diving deeper into the XRP price action, particularly in the 4-hour chart. This pattern typically signals a continuation of the prevailing trend, which is bearish in Ripple’s case. The formation of this pattern amidst a downward trend often rings alarm bells for traders as it can indicate further losses on the horizon.

The XRP price demonstrates sideways movement despite the bearish undertones, oscillating between two critical levels. The overhead resistance stands firm at $0.51, while a support trend line demarcates the lower boundary. 

As the price inches closer to this support trend line, the possibility of an upward movement towards the overhead resistance becomes apparent. Breaching the $0.51 resistance could pave the way for a more bullish outlook in the near term.

Can the XRP Price Fall Back to $0.43?

If XRP price manages to rally past the $0.51 resistance, the coin might find itself challenging the overhead resistance trend line, potentially ushering in a bullish phase. On the contrary, a downward breakdown from the current sideways movement could spell trouble. Such a move would likely lead to the XRP price plunging towards the $0.43 mark, reaffirming the bearish sentiment and potentially leading to further losses.

  • Exponential Moving Average: The declining trend in 50-day EMA warns of a death cross with 200-day EMA
  • Relative Strength Index: The RSI slope reflects the underlying buying pressure is rising.

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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

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.

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