Sarah Tran
Independent Analyst
- XRP price has seen its uptrend retreat and is now at risk of falling an additional 40%.
- Ripple failed to galvanize investors’ enthusiasm as bears target $0.38.
- XRP may be able to discover reliable support at $0.63 before dropping further.
XRP price slipped below the lower boundary of the governing technical pattern which acted as a crucial level of support for Ripple. The cross-border remittance token has put a bearish forecast of a 40% decline on the radar.
XRP price at risk of tumbling toward $0.38
XRP price has collapsed below the lower boundary of the symmetrical triangle pattern on the daily chart, projecting a 48% decline from the downside trend line toward $0.38.
The bears have already kickstarted the nosedive and Ripple is still awaiting a 40% fall toward the aforementioned pessimistic target.
The first line of defense will emerge at the multi-month support trend line that was formed on June 21 at $0.63. An additional foothold may appear at the June 25 low at $0.58 before dropping toward the 127.2% Fibonacci extension level at $0.50.
XRP price may discover additional reliable support at the March 24 low at $0.45 and at the March 11 low at $0.42 before Ripple falls toward the bearish target.
However, if a spike in buy orders occurs, XRP price may face resistance at the 78.6% Fibonacci retracement level at $0.69 before targeting bigger aspirations.
XRP price will meet another hurdle at $0.76, where the 61.8% Fibonacci retracement level and the 21-day Simple Moving Average (SMA) meet.
XRP/USDT daily chart
Additional buying pressure may incentivize XRP price to move higher toward the 50% retracement level at $0.81, coinciding with the 50-day SMA before targeting the upper boundary of the symmetrical triangle pattern at $0.90.
Breaking above the topside trend line of the prevailing chart pattern could unleash additional upside potential for XRP price, potentially reversing the period of underperformance.
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