XRP Price Plummets, Signaling Bearish Market Conditions

XRP price declined below the $0.60 and $0.50 support levels, indicating weakness below the 50-week simple moving average and $0.50. A major contracting triangle is forming with support at $0.4250 on the weekly chart, suggesting potential further downsides if the triangle support breaks.

XRP Price Plummets, Signaling Potential Bearish Wave

New Delhi, India (CoinChapter.com), [Date] — XRP, the third-largest cryptocurrency by market capitalization, has plunged significantly below crucial support levels, raising concerns among investors and reigniting the possibility of extended declines in the near future.

Breakdown Below Support

In the preceding analysis, experts identified the formation of a double-top pattern near the $0.7420 zone, indicating a potential reversal in the upward trend. XRP, however, failed to gain traction and initiated a steep decline, breaking below the $0.600 support zone. Moreover, it breached a bullish trend line with support at $0.510 on the weekly chart, further exacerbating the bearish outlook.

Bears subsequently pushed the price under the 76.4% Fibonacci retracement level, originating from the $0.4858 swing low to the $0.7424 high. Notably, recent geopolitical tensions between Israel and Iran have heightened bearish sentiment within the cryptocurrency market, particularly affecting Bitcoin and Ethereum.

Technical Indicators Point to Weakness

On the weekly chart, XRP price has fallen below the 50-week simple moving average (SMA), signaling weakness. It has also tested the 1.236 Fibonacci extension level of the upward move from $0.4858 to $0.7424, currently situated at $0.4250. This level coincides with the formation of a contracting triangle pattern, suggesting potential downward pressure.

The current price movement suggests that XRP may continue to experience declines below the $0.500 support. The main uptrend support is now coalescing around the $0.4250 zone. Should the bulls fail to defend this support level, a strong bearish reaction could ensue.

Further downside risks exist at $0.40 and $0.3280. A breach below these support levels could intensify selling pressure and lead to a potential drop towards $0.2840.

Potential for a Short-Term Recovery

Despite the bearish outlook, XRP bulls may still attempt to prevent further declines below the triangle support. Initial resistance to a potential recovery lies at $0.50, followed by significant resistance at $0.550 and the 50-week SMA.

A weekly close above the 50-week SMA could trigger a sustained increase, with the next potential target for bulls being $0.620. However, the main resistance remains near the $0.740 zone, above which XRP could embark on a more substantial uptrend towards $1.00.

Conclusion

Overall, XRP price action exhibits signs of weakness below the $0.50 support level. The $0.4250 support becomes critical, as a breakdown below it could trigger substantial losses, potentially testing levels as low as $0.3280. Conversely, a potential recovery may face resistance at $0.550, with the possibility of a larger uptrend emerging if the price surpasses the $0.740 zone.