XRP price has crashed below a crucial support level, risking further downside as the crypto meltdown gains steam. It plunged to a low of $1.7020 on Monday morning, its lowest level since November last year. It has retreated by over 50% from its highest point this year, erasing billions of dollars in value.
XRP price prediction: technical analysis
The daily chart shows that the price of Ripple is at risk of more downside in the coming days. That’s because the token has now plunged below two crucial support levels $1.9522 and $1.80. The initial support level was the neckline of the head and shoulders pattern whose head and shoulders were at $3.4 and $3. The H&S pattern is one of the most popular bullish signs in the market.
The XRP coin has also moved below the key point at $1.80, the lowest swing on February 3rd this year. This price was a false breakout and the lowest point this year.
Now, the Ripple price has formed a death cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) have formed a death cross pattern. This is one of the most popular bearish signs in the market. The last time that the XRP price formed a death cross its price tumbled by more than 50%.
XRP price has also plunged below the weak, stop, & reverse point of the Murrey Math Lines tool. Also, the Relative Strength Index (RSI) and the MACD indicators have continued falling, while the Average Directional Index (ADX) has pointed upwards, a sign that the downtrend is accelerating.
Therefore, the XRP coin will likely continue falling as sellers target the next key support at $1.1162. This is a crucial target because it is slightly above the 78.6% Fibonacci Retracement level. Also, the distance between the head and the neckline is about 42%.
Measuring the same distance from the neckline brings you to the target at $1.1162. The XRP target is also along the extreme oversold level of the Murrey Math Lines.
Why the Ripple price is crashing
There are a few reasons why the XRP price is crashing. First, the coin is crashing as the crypto fear and greed index tumbles, a sign that investors fear a potential recession if the ongoing trade war accelerates.
This fear has outweighed the optimism surrounding XRP and Ripple after several important news. For example, the SEC ended the Ripple case that existed for a few years. Ending this case means that Ripple is now largely free to enter deals with companies like banks and money transfer firms in the USA.
Ripple Labs is seeking to become a major player in the cross-border payment industry by being an alternative to SWIFT, a network that handles over $150 trillion a year.
There is also optimism that the Securities and Exchange Commission (SEC) will approve a spot XRP ETF. Such ETFs could give investment firms afraid of dealing with keys to buy XRP and gain exposure to the token.
A major risk about this is the rising concern that investors are not interested in altcoin ETFs. That’s because while Bitcoin ETFs have accumulated over $35 billion in assets, those tied to Ethereum have added just $2 billion.
Still, on the positive side, there is a likelihood that the XRP crash will abate soon if Donald Trump caves and ends his tariffs and if the Federal Reserve intervenes in the market.
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