Despite investors anticipating a potential price rally following significant legal developments, XRP could be poised for further losses in the coming weeks.
Particularly, in a TradingView post on August 28, cryptocurrency analyst Alan Santana pointed out that technical indicators suggest XRP is navigating a descending channel. This pattern has consistently driven the price lower.
Santana highlighted the critical issue of “lower highs,” where each price peak is lower than the previous one. This pattern often precedes a “lower low,” where the price dips below previous troughs.
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This movement has been reaffirmed over the past three days, with each closing reflecting bearish momentum. This consistent downtrend signals that a further decline in XRP’s value could be imminent.
Notably, after two consecutive red days, a day that starts green but ultimately closes in the red is typically a strong indicator that sellers are in control. This pattern was observed, suggesting that XRP could reach even lower levels.
XRP’s price key levels to watch
The analyst pointed out that XRP is currently hovering around $0.56, and if the bearish trend continues, the next critical support levels are identified at $0.51 (38.2% Fibonacci level), $0.47 (50% Fibonacci level), and $0.40 (78.6% Fibonacci level).
Santana suggested that if the current trend persists, XRP might test the lower trendline of this channel, potentially bringing the price down to around $0.37. However, in a more severe market downturn, XRP could drop as low as $0.30, a level marked by the extension of the lower trendline and critical support zones from previous price action.
On the other hand, crypto analyst Mikybull Crypto, in an X post on August 28, suggested that XRP might be on the verge of a major breakout, replicating past price movements.
According to Mikybull Crypto, XRP’s volatility has dropped to unprecedented levels since 2017. This significant decrease has historically preceded major price movements, sparking anticipation of a potential breakout and rally similar to those in 2017 and 2020.
The expert observed that XRP is trading within a tight range, with Bollinger Bands (BB) constricting—a classic technical indicator often preceding a strong directional move. The last time XRP experienced such low volatility was in early 2017, just before the digital asset embarked on an explosive rally, gaining thousands of percentage points in value.
With the market dynamics in 2024 being different yet still influenced by significant regulatory and technological developments, the potential for a breakout in XRP is capturing the attention of the broader crypto community.
XRP price analysis
As of press time, XRP was trading at $0.58, having corrected about 0.3% in the last 24 hours. On the weekly chart, the token is down almost 1.8%. Notably, the token experienced a crash less than two hours after Ripple moved 200 million XRP from its treasury account, as Finbold reported.
In summary, XRP failed to capitalize on the recent ruling that minimized the chances of the token being declared a security. In the current state, clinching and retaining gains above the $0.60 resistance remains a key area for XRP to focus on.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
