Why XRP Might Sink Like Titanic Ship

XRP has sparked caution among investors and cryptocurrency enthusiasts as bullish signals worry about losing momentum.   The Ripple-based token is changing hands at $2.43 with little gains though it posted a 20% rise in the past week.

 

Price action

The next significant level for the price of XRP  is $2.90, which is consistent with an upward spiral forecast. Analysts, however, believe that the breakout strength is still uncertain. The crucial support levels before a stronger move are $2.00 and even $1.47, which the price of XRP may retreat to if it fails to break out of this level.

A bearish trend, marked by sluggish price movements and decreased investor participation may hurt its future. This might cause profit-taking and additional price drops, which could cause XRP to drop below its $2.00 support level.

This support for XRP is established at the crucial $2 price level. It may be difficult for the bulls to hold this price point amid increased selling pressure.

XRP is currently trading below its 20-day exponential moving average (EMA), which determines the average price of an asset over the previous 20 days and gives more weight to recent prices. A downtrend or increased short-term selling pressure is indicated when the token falls below this important moving average, confirming bearish sentiment.

A stronger selling pressure could cause the price of the XRP token to drop below the $2 support provided by the lower line of its descending triangle. The token’s value will plummet to $1.88 in that case. If this level is broken, XRP’s price might fall even lower to $1.35.

The low accumulation seen from XRP whales in recent weeks has elevated uncertainty. Santiment claims XRP whales that own between 10,000,000 and 100,000,000 tokens have decreased their holdings by 350 million XRP.

This indicates that this group of XRP investors has sold tokens totaling $746 million during the reviewed period, which has pushed the price of the cryptocurrency lower.

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ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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