The XRP price has been on a downward spiral, dropping a significant 11.7% last week. This bearish trend saw the altcoin fall below the crucial $0.50 psychological support level. Analysts are now eyeing potential breakdowns and lower support zones for the Ripple .
Triangle Pattern Breach on Weekly Chart
Source: TradingView
A technical analysis staple, the triangle pattern, has failed to hold XRP within its confines. The price sliced through the rising support trendline on the weekly chart, raising concerns about a continued decline. A Doji candlestick formation emerged at press time, indicating indecision in the market. XRP currently clings to the $0.41 level.
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Whales Dump, Trading Volume Soars
The bearish sentiment surrounding XRP is amplified by liquidations worth $2 million on long positions. This suggests that investors who bet on the price going up are exiting their holdings. Further fueling the correction rally is a surge in trading volume by 57% over the past 24 hours.
Technical Indicators Point South
The breakdown of the triangle pattern on the weekly chart paints a bleak picture for the altcoin. Analysts warn that a drop below the $0.40 support level could trigger a test of the $0.32 and even the $0.29 support zones. The Relative Strength Index (RSI) is currently hovering in the oversold territory, hinting at a possible short-term bounce, but the overall trend remains bearish.
Large XRP Transfer Sparks Speculation
Adding another layer of intrigue to the XRP price action is a recent large transfer of 37,390,000 XRP, valued at approximately $16 million. This movement from an unknown wallet to the Bitstamp exchange has sparked speculation about potential market manipulation. While the purpose of the transfer remains unclear, it could indicate either selling pressure or strategic repositioning by major holders.
Can XRP Recover?
The current scenario presents XRP with a critical juncture. The bearish breakdown and potential selling pressure from whales are undoubtedly exerting downward force. However, a strong support level sits at $0.40, as evidenced by the lower price rejection in the daily candle.
If the broader cryptocurrency market experiences a recovery, it could very well propel XRP back above the downtrend line. Additionally, a bullish reversal that reclaims the $0.50 psychological mark could pave the way for a climb towards the $0.68 resistance level. On the other hand, a decisive break below $0.40 could see XRP plunge to the $0.32 or even the $0.29 support levels.
Only time will tell which direction the altcoin will ultimately take. However, one thing is certain: the coming days and weeks will be crucial for determining the altcoin’s future trajectory.
