What to Know:
- XRP experienced a price decline following Ripple’s Swell conference, reversing earlier gains.
- Technical analysis indicates a potential further downtrend for XRP, with a bear flag breakdown and death cross formation.
- Key support levels around $1.65–$1.70 may provide a floor, aligning with the average on-chain cost basis for XRP holders.
XRP’s price has seen a notable correction recently, prompting analysis of its potential future trajectory. Despite positive announcements at Ripple’s Swell conference, XRP has struggled to maintain upward momentum. Technical indicators suggest that further downside movement could be on the horizon for the cryptocurrency.
The recent price action has confirmed a bear flag continuation pattern, signaling potential for further declines. Additionally, a death cross formation, where the 50-period EMA falls below the 200-period EMA, is looming. These technical factors point towards a possible continuation of the downtrend, potentially testing lower support levels.
The $1.65–$1.70 range represents a key area of interest, aligning with the bear flag’s measured move target and previous support levels from April. This range also corresponds to XRP’s aggregated realized price, representing the average on-chain cost basis for all wallet cohorts. Historically, this level has acted as a significant accumulation zone for long-term holders.
While technical indicators suggest potential downside, the convergence with the aggregated realized price could provide a strong support level. This area may attract buyers and limit further downward pressure, offering a potential stabilization point for XRP. Monitoring Bitcoin’s performance, regulatory developments, and ETF approvals will be crucial for assessing the overall crypto market sentiment and its impact on XRP.
In conclusion, XRP is currently facing bearish technical signals, but key support levels may offer a potential floor. Investors and traders should closely monitor these levels and broader market trends to make informed decisions.
Source: Original article
