Over the weekend, the price of the altcoin XRP witnessed a hint of recovery, continuing its bullish momentum into the early hours of the week. Even as these green shoots began to sprout, crypto experts and market watches seems skeptical if this budding upturn will actually blossom. One such crypto analyst foresees a precipitous drop in the XRP price very soon.
Taking to the well-known TradingView website, a crypto-market analyst, who goes by the intriguing handle “Without Worries”, illustrated a rather bleak outlook for XRP. Based on a two-year performance evaluation of XRP, the hypothesis was formed: rather than continuing its gradual climb, it’s far likelier for the altcoin’s price to plummet.
An interesting insight revealed in ‘Without Worries’ analysis was that XRP has, for the past couple of years, been oscillating within an uptrend channel. Barring a few exceptions, this channel has been largely stable, enabling the cryptocurrency to keep up its bullish performance. However, this once steady support seems to have crumbled, according to the analyst, signaling an impending price reversal for the altcoin.
The alarms started ringing when this channel support gave way following a price top in April 2022, breaking the market structure of the coin. Given these factors, predictions veer towards a price crash back to levels reminiscent of the 2020 rates.
As per ‘Without Worries’, the fall could be as dramatic as hitting the $0.1 mark. Should this indeed occur, it would signify a drastic nosedive of over 80% from the altcoin’s current value of approximately $0.5.
But as they say, every coin has two sides, and this analysis is no different. There remains a possibility, albeit slim, of XRP maintaining its present uptrend. If that were the case, XRP would need to persevere in trading within the aforementioned channel, clinging onto its support level.
Where the stumbling block lies is in the fact that the price action has already abandoned the channel. The new support level to hold onto becomes $0.3. If XRP can hold on tightly to this, then the upward trend might yet survive. In the words of ‘Without Worries’, “that support not confirmed, 10 cents is next.”
Although the analyst acknowledges the possibility of the price action re-entering the channel and continuing its ascent, he stands by his prognosis that it seems highly improbable. In his view, the writing is on the wall: the price has failed to hold onto the support.
Despite this ominous prediction, at the time of writing, the XRP price was showing resilience, holding on above the $0.52 mark, enduring a minor loss of 1.33% within the last day. There were even small gains of 2.82% in the last week. XRP continues to retain its seat as the 7th largest cryptocurrency, boasting a hearty market cap of $29.3 billion.
