XRP Fails Bullish Breakout, Could Tumble Toward Multi-Month Lows
Key Takeaways
- XRP’s weekly chart shows a head and shoulders pattern, a signal of a potential reversal from bullish to bearish.
- The MACD on the same chart has dropped into negative territory, reinforcing the ongoing downward trend
- If the current trend continues, XRP could drop to $1.60 and, in an extreme bearish case, possibly down to $1.
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The XRP price continues to experience rough times, as it recently failed to return to the $3 mark. This decrease was due to hawkish market conditions and macroeconomic policies.
XRP struggles to exit the prolonged downtrend despite dropping to the previous accumulation level. With this in place, bears might continue to remain dominant, pushing XRP’s price further lower to levels not seen in a long time,
XRP Breakdown Continues
On the weekly chart, XRP’s structure shows a head-and-shoulders pattern formation. The head-and-shoulders pattern is a classic reversal chart pattern used in technical analysis to signal a potential trend change—usually from bullish to bearish.
As seen below, XRP’s price climbed and then pulled back, forming the left shoulder. Later on, the price rises again, making a higher peak(head) than the left shoulder, then drops
Finally, the right shoulder appears but doesn’t surpass the head, then declines again. As seen below, XRP’s price has fallen below the neckline at $2.15.
Following this decline, the Moving Average Convergence Divergence (MACD) has dropped to the negative region. This drop in the MACD reading indicates bearish momentum.
If this trend continues, XRP’s next move might be a decline to support nearly $1.44.
XRP Price Analysis: Trouble Lies Ahead
On the daily chart, the technical setup seems similar. But in this case, XRP’s price is confined within a descending channel. Amid this decline, the Relative Strength Index (RSI) reading is below the signal line.
The RSI measures momentum by measuring the size and speed of price changes. When it rises, momentum is bullish.
On the other hand, a decline in the RSI indicates a bearish momentum. As of this writing, the RSI is below the neutral line, indicating that the momentum around XRP is bearish.
If this trend continues, XRP’s market value might rise significantly above $2.
Like the RSI, the Awesome Oscillator (AO) reading has dropped below the zero signal line. This drop in the AO indicates a bearish trend, suggesting that XRP might keep consolidating amid the green histogram bars.
In terms of its short-term targets, XRP’s next move could be a decline to $1.60 at the 0.382 Fibonacci retracement level. In a highly bearish case, its price might fall by 50% to $1.
On the other hand, if momentum becomes bullish, XRP’s price might jump toward the 0.618 golden pocket ratio.
In that scenario, the altcoin might rally to $2.29. A highly bullish scenario could see the token rise to $2.78.
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