XRP is currently facing a potential 45% decline amid a bearish descending triangle pattern on its daily chart, which could lead to a significant price drop. Here's a breakdown of the situation :
- *Current Price:* $2.15
- *Bearish Pattern:* XRP's price chart has been forming a descending triangle pattern since late 2024, characterized by a flat support level and a downward-sloping resistance line. If the price breaks below the flat support level, it could fall by the maximum height of the triangle.
- *Key Support Levels:*
- $2.18: 50-day simple moving average (SMA)
- $2.06: 100-day SMA
- $2.00: Psychological support level
- $1.20: Potential downside target, marking a 45% decline from current levels
- *Network Activity:* Daily active addresses (DAAs) on the XRP Ledger have dropped significantly from 608,000 in March to around 30,000 in April and May, indicating reduced interest or confidence in XRP's near-term prospects.
- *Trading Volume:* Despite a 1.17% drop in XRP's price, daily trading volume has increased by 30% to $2 billion, potentially indicating profit-taking or repositioning by traders.
To watch out for:
- Breakout Above $2.18: Could invalidate the bearish pattern and lead to a rally toward $3.00
- *Support Level Failure:* If $2.00 support fails, XRP price could plummet to $1.20
Keep in mind that cryptocurrency markets are highly volatile, and prices can fluctuate rapidly. These predictions are based on technical analysis and may not reflect actual market performance.
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