Forecast Issued: Swift Drop in XRP Value Likely, Predicted Down to $0.6, -72% Dip
In a recent analysis, renowned crypto analyst Xanrox has forecasted a potential significant price crash for XRP, the sixth-largest cryptocurrency by market capitalisation. The prediction is based on several key technical and market factors.
According to Xanrox, XRP's price action has been confined within a multi-year ascending triangle since 2017. This pattern, if the price fails to break out effectively, can signal potential downward pressure. Moreover, following a significant price surge, a large Fair Value Gap (FVG) was created, which tends to get filled, especially after prolonged price ranges. In XRP's case, this gap is positioned at lower levels, potentially indicating a significant price drop.
The analyst also points out the existence of a Fair Value Gap in XRP's price, which tends to be filled, especially after long-term ranging. This, combined with XRP's resistance to new highs despite reaching new five-year highs, could lead to downward pressure.
Historically, XRP has experienced average declines of about 25% in the year following overbought Stochastic RSI signals. Given this pattern, Xanrox suggests that XRP might be due for another correction.
The analyst's prediction suggests that if these factors align, XRP could experience a significant price correction, potentially as low as $0.60, representing a near 70% drop from recent highs. This would represent a 72% decrease in price from the current level. For investors who bought into the coin before the rally, the analyst advises locking in profits at this level.
It is important to note that the analyst's prediction does not specify a timeline for the potential XRP price crash. However, the analyst believes that the XRP price has already topped out, and the price's brief jump in 2024 does not change this bearish outlook.
Meanwhile, Bitcoin's price could also be at risk of crashing to $98,200 due to negative sentiment, although this is not directly related to XRP's prediction.
Despite XRP remaining one of the most actively discussed cryptocurrencies on social media, Xanrox considers the price as extremely high. As always, investors are advised to conduct their own research and make informed decisions based on their risk tolerance and investment goals.
If XRP's price fails to break out effectively from its multi-year ascending triangle, as suggested by the analyst Xanrox, it could indicate potential downward pressure, possibly leading to a significant price drop. Additionally, the existence of a Fair Value Gap, combined with XRP's resistance to new highs, could be contributing factors for this potential price correction.
