A symmetrical triangle suggests a potential 40% decline.
XRP developed through trendline convergence, forming a symmetrical triangle on the daily chart. These patterns usually indicate market indecisiveness and provide signals for a strong bullish or bearish reversal.
As of January 10th, XRP It is trading near the upper boundary of the triangle, which has historically led to lower prices. A decline towards the lower bound, estimated at around $2.05 (50-day EMA), is possible.
If XRP falls clearly below the lower trend line, the price could plummet to $1.36, a 40% decline from current levels. This target is calculated by subtracting the maximum height of the triangle from the breakdown point near $2.18.
Whale Activity Indicates Bearish Sentiment
According to market data, large XRP holders or whaleWe are reducing our holdings. Addresses with at least 1 million XRP tokens currently hold a total of 90.5 billion XRP, a record low compared to 100 billion last year.
The decline in whale holdings during the period of price consolidation reflects growth. bearish sentiment. Selling by these major investors could put additional downward pressure on the XRP price.
Key support and resistance levels
On the weekly chart, XRP is consolidated within a price range of $1.98 to $3.03. These levels coincide with the 1.0 and 1.618 Fibonacci retracement lines, respectively.
XRP recently rebounded from the $1.98 support level but has struggled to maintain upward momentum. The weekly RSI remains above 70, signaling overbought conditions and the possibility of a deeper correction increasing.
Potential scenarios:
- Bearish scenario:
- A decisive decline below $1.98 could push the 20-week EMA towards $1.50.
- This level, near the 0.786 Fibonacci retracement of $1.62, previously served as a correction target.
- Bullish scenario:
- if XRP If it stays above $1.98, a rebound to $3 is possible.
- This is consistent with some optimistic forecasts and suggests further upside is possible once the market stabilizes.
Summary: Will XRP Crash Again?
XRP is facing several bearish signals, including technical patterns and declining whale holdings. The symmetrical triangle pattern suggests a potential 40% decline if the price falls below key support levels. Whale activity further highlights bearish pressure.
However, holding above $1.98 could provide hope for a recovery. Traders should closely monitor these important levels to predict the next major price movement.
XRP Price Scenario Summary
|
script |
target price |
conditions |
|
bearish analysis |
$1.36 – $1.50 |
A break below $1.98 and the lower trend line. |
|
bullish rebound |
$3 – $3.46 |
Hold above $1.98 and break the upside. |
Understanding these potential scenarios can help investors make informed decisions in volatile markets.