Despite This Recovery, New Technical Signals Suggest XRP May Be Heading for a Bearish Correction, Potentially Dipping to $1.60

XRP, the fourth-largest cryptocurrency by market capitalization, has made significant strides in its recovery after a downturn on April 7.

The price of XRP, the fourth-largest cryptocurrency by market capitalization, has made significant strides in its recovery after a downturn on April 7. The coin dropped to $1.64, a low not seen since December, and closed below $2 for the first time in months. However, it managed to bounce back and reclaim the $2 mark.

Despite this recovery, new technical signals suggest that XRP may be heading for a bearish correction, potentially dipping to $1.60. The primary concern is the appearance of a rising wedge pattern on XRP’s price chart.

A rising wedge is a bearish chart pattern that often signals a reversal after an uptrend. The pattern forms when the price creates higher highs and higher lows, but at a narrowing pace, causing the two trendlines to converge. This pattern typically indicates that bullish momentum is weakening. When the price falls below the lower trendline of the wedge, it often leads to a shift from upward to downward momentum.

On Wednesday, XRP’s chart displayed the breakdown of this rising wedge, suggesting that the uptrend may be losing steam.

On the other hand, XRP’s movement below the Ichimoku cloud suggests a bearish trend. The Ichimoku cloud is a key indicator in technical analysis, showing the overall trend direction of an asset. When the price is above the cloud, it signals a bullish trend, but when it drops below, it suggests a bearish trend.

This shift below the Ichimoku cloud further strengthens the case for a potential decline in XRP’s price.

Based on these technical indicators, there’s a growing possibility that XRP may retest its support level at $1.60. Veteran investor and technical analyst Thomas Bulkowski, who has studied chart patterns extensively, suggests that the starting point of the wedge often marks the initial support level following a breakdown. According to this analysis, if the bearish momentum continues, XRP could dip back to $1.60.

This drop would represent a further correction, following the initial downturn from the April 7 market decline.

At the time of writing, XRP is trading at approximately $2.07, reflecting a slight 0.60% dip in the past 24 hours. However, over the past week, the coin has gained 3.81%.

While this short-term positive movement is encouraging, the technical analysis hints at a potential retreat. In the context of a broader market downturn, XRP might struggle to maintain its current price level.

However, some experts remain optimistic about XRP’s long-term prospects. Crypto educator Davinci Jeremie has a highly bullish target for XRP, predicting that it could hit $24 this year.

He believes that support from U.S. officials could trigger a massive rally for the coin. This price target would represent a 1,059% increase from its current value.

Nonetheless, Jeremie advises caution, labeling XRP as a “banker’s coin” and recommending that investors sell their holdings in favor of Bitcoin.