XRP price struggles to revert to its bullish trajectory, and according to one top analyst, a drop below $2 is now looming. As selling activity rises and buyers show hesitance, is a Ripple price crash to $1 brewing? Let’s explore.
XRP Price Prediction as Top Trader Sounds Bearish Alarm
XRP price today trades at $2.36 after a 4% drop in 24 hours. At press time, Ripple had the biggest 24-hour loss among the top ten largest cryptos by market cap.
Top crypto analyst and trader Peter Brandt has noted that Ripple’s downtrend was only just beginning. In his analysis, he pointed out a head and shoulders pattern on the XRP price chart. This pattern usually predicts a trend reversal from bullish to bearish.
Brandt observed that XRP price has successfully defended support at the neckline of this pattern at $1.90. However, if the current downtrend progresses and Ripple breaches this support level, it could spark a decline towards $1.07.
Conversely, if buyers step in now, and XRP price manages to break out above $3, it will invalidate this bearish setup.
A recent Coingape article also highlighted the top reasons why the XRP bull run may be over as the price remains stuck in consolidation for three months. Moreover, speculation that the market may have already priced in Ripple’s win in the SEC case is causing reduced trader interest.
Is an XRP Crash to $1 Brewing?
A full bearish reversal for XRP price that will confirm a crash to $1 will only happen if it breaches the neckline of $1.90 as highlighted on Brandt’s chart. However, several catalysts could push Ripple past $2.90 and invalidate this bearish pattern.
Nate Geraci, the President of ETF Store, opined that the end of the SEC vs. Ripple lawsuit has increased the odds of an XRP ETF approval.
“Spot XRP ETF approval is simply a matter of time. And yes, I expect Blackrock, Fidelity, etc to all be involved.”
If BlackRock files for a spot XRP ETF before the XRP price drops to $1.90, the price is bound to rally and possibly break out of the bearish head and shoulders pattern and avoid a crash to $1.
The other catalyst that could prevent an XRP price crash to $1 is a surge in leveraged trading activity. Popular analyst Ali Charts noted that XRP futures contracts have surged by 36% in just two weeks. This increase likely comes from a buildup of long positions.
Data from Coinglass further shows that on Binance, 72% of traders have opened long positions on XRP, while only 27% of traders have opened short positions. This data depicts positive trader sentiment that the XRP price will rebound.
These factors suggest that an XRP crash to $1 is not brewing, and such a drop might not happen in the near term.
Ripple Technical Analysis
Ripple’s 4-hour price chart shows that the altcoin has entered a key demand zone. The volume profile bars show at the current price zone, bullish pressure is stronger than bearish pressure, which could prevent a drop to the crucial level of $1.90.
This price chart further shows that the immediate support level lies at $2.23. Falling below this level has previously caused a spike in selling volumes. If XRP continues to trade above this level, a drop to $1 may not happen.
However, a full reversal from bullish to bearish trends will occur if XRP makes a decisive close above the $2.59 resistance. The RSI, which stands at 39 at press time, also needs to rise past 50 to show strong buying activity and bullish momentum.
This price chart shows mixed sentiment towards the XRP price. Despite Ripple being in a demand zone, buying activity as depicted by the RSI is still low. Nevertheless, as long as Ripple defends crucial support levels at $2.23 and $1.90, it can prevent a crash to $1.
The post XRP Price Prediction & Analysis: Top Trader Sounds Bearish Alarm, Is a Crash to $1 Brewing? appeared first on CoinGape.
