NewsBTC’s recent study on XRP throws light on its weakening price trends across multiple timeframes. XRP, once seeming stable, is now in a volatile phase with significant breakdowns on both daily and intraday charts, indicating a shift in market momentum that traders should be aware of. As negative pressure intensifies and key support levels start to tumble, the crypto community is abuzz with speculations about XRP’s next move – will it recover soon or is a steep correction impending?
Renowned crypto analyst Gowanus Monster, in his latest XRP update, pointed out a crucial technical development. His analysis shows that XRP has formed a bearish Descending Triangle across various timeframes – a textbook pattern that usually indicates a continued downward trend. Based on the calculated move from this formation, the estimated target stands around $1.90, hinting at a considerable retracement if the bearish momentum persists.
Upon examining the weekly chart, a well-defined structure begins to emerge, characterized by distinct upper and lower boundaries. Gowanus Monster emphasized the importance of identifying a higher low within this channel. Additionally, he brought up a key observation: if a price rebound from the upper edge of a descending channel does not reach the lower edge but bottoms out prematurely, it often precedes a bullish breakout. If this happens, XRP might challenge the prevailing bearish structure and trigger a new rally beyond its channel.
According to crypto analyst GemXBT, XRP is currently in a short-term downtrend, with its price trading below the 5, 10, and 20-period moving averages. This pattern typically signifies continued bearish momentum, suggesting that sellers currently control the market. The Relative Strength Index (RSI) has entered the oversold territory, hinting at a potential reversal or a consolidation phase as the market balances out. However, the MACD line being below the signal line indicates that the bearish pressure is still strong, and any recovery attempt might face obstacles.
From a price structure perspective, GemXBT identified a crucial support around $2.15, which buyers might strive to protect. The resistance point is near $2.25, a level that bulls need to overcome to alter short-term sentiment. The recent increase in trading volume is noteworthy as it could lead to increased volatility, either quickening a breakdown if support fails or boosting a sharp recovery if sentiment turns positive.
