More pain coming in or signs of reversal?

TL;DR

XRP dropped from $0.66 to around $0.56, with a bearish pattern indicating a new downtrend. Some analysts remain optimistic, predicting a rebound and a possible rise to an all-time high within a year.

XRP lost momentum

Ripple’s XRP was among the best-performing cryptocurrencies at the end of last month, with its price rallying to a four-month high of $0.66. However, the bears took control a few days ago, and the token is now worth around $0.56 (according to data from CoinGecko), which is down 7% on a daily basis and down 14% from its peak local

XRP Price, Source: CoinGecko

Some prominent industry participants speculated that XRP could be poised for another drop. Veteran trader Peter Brandt is one of them, noting that the XRP/BTC pair has recently headed south. This decline means that Ripple’s native token has underperformed compared to the mainstream cryptocurrency.

Additionally, Brandt suggested that the XRP/BTC price chart resembles a “complex multi-year” head and shoulders pattern. It consists of three peaks: a higher peak (the “head”) between two lower peaks (the “shoulders”).

The pattern is generally considered a bearish signal for XRP price, indicating the start of a possible downtrend.

“If this chart breaks through the lower support line, all X accounts with the initials XRP attached will slowly disappear, never to be seen again,” concluded Brandt.

The bullish scenario

It’s worth noting that other analysts remained bullish despite the latest price drop. User X Dark Defender, for example, assumed that the pullback to around $0.57 is the first level of resistance, and the second is $0.53. The trader stated that XRP’s bullish path could continue once $0.6649 is broken. Remember, the last time the token traded this high was in mid-March 2024.

Others were even more optimistic. Ash Crypto, an X user with over a million followers, predicted that XRP’s valuation could soar to between $3 and $5 in the next 12 months. However, the trader did not base the forecast on leading indicators or technical analysis tools.

Speaking of essential metrics, mention should be made of the XRP Relative Strength Index (RSI), which has been experiencing a decline lately. It measures the speed and change of price movements, identifying whether the asset is overbought or oversold. The RSI ranges from 0 to 100, with a ratio above 70 indicating a price correction could be coming. The index currently stands at 33.

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