What to Know:
- XRP faces potential price correction based on monthly chart analysis.
- Key support levels at $2.00 and $1.70-$1.80 could determine future price action.
- A break below the mid-band could trigger a significant drop to $0.50.
XRP is at a critical juncture after failing to sustain gains above $3.60 earlier in October. Analysis of its monthly chart suggests a possible correction, bringing it back to levels seen before its recent breakout attempt. Investors are closely watching key support levels to gauge the potential depth of any pullback.
The monthly chart shows a rejection at the upper Bollinger Band, historically indicating a move toward the middle line, around $1.75. Past instances of such rejections have led to significant corrections, as seen in 2022, which preceded an extended accumulation phase. This pattern raises concerns about a potential reset of recent gains.
From a market cycle perspective, XRP tends to consolidate after reaching its upper volatility range, rebuilding strength near the bottom half. The critical question is how far the price may fall before buyers step in to support it. A failure to hold the mid-band could jeopardize the growth of the past two years.
Currently, three scenarios are being considered for XRP’s price action. The most optimistic scenario involves maintaining support above $2.00, preserving the long-term balance. A break below this level could push the price into the $1.70-$1.80 range, coinciding with the middle Bollinger line and previous accumulation levels. The most bearish scenario involves losing the mid-band entirely, potentially leading to a significant decline toward $0.50.
XRP’s price action hinges on its ability to hold key support levels. Investors should monitor these levels closely as they could signal the direction of future price movements.
Source: Original article
