Currently, $XRP 's price is undergoing a bullish consolidation; however, an analyst predicts a potential selloff due to an atypical market configuration.
Amid the overall consolidation within the digital currency sector, a leading analyst is convinced that XRP's price may soon lose its upward momentum.
Although it has been consolidating within a narrow range of $2.16 to $2.25 over the past 24 hours, BLOCK BULL suggests that a particular setup on the XRP chart could indicate a downturn in the near future.
Given the various factors influencing the Ripple ecosystem, this prominent altcoin remains under observation for its forthcoming price movement.
Why XRP Price May Fall 30%
The overall uncertainty in the market tends to negatively impact altcoins. Nevertheless, BLOCK BULL has indicated on X that XRP may be vulnerable to a decline of 30% from its present value, potentially reaching a low of $1.55.
The analyst presented a chart in conjunction with the X post to support his forecast. In this chart, he anticipated a rejection at the boundary of a bull flag pattern that the XRP price has formed on the daily chart.
Should XRP fall below $2.2562, the next critical support level to monitor is $1.55. In a significant development, the analyst posits that this setup is a strategy to unsettle retail investors, allowing wealthier individuals to acquire more of the asset.
While the cryptocurrency may continue its decline, which has resulted in a 1,000% liquidation imbalance, the prevailing opinion is contingent upon the potential for a forthcoming breakout.
Current State of the XRP Market
Recent market analysis indicates that the cryptocurrency is currently trading at $2.239, reflecting a 3.58% increase over the past 24 hours.
The coin has experienced a positive shift in its performance over the last month, entering May with a more optimistic outlook.
After recovering from its 7-day losses, it has achieved a 4.52% increase in value during the past month. Data from Cryptorank corroborates that the XRP price has averaged a 25% growth rate in May.
Historically, over the last three years, the coin has concluded the month on a bullish trend and is presently sustaining this pattern.
Despite a 2% price decline noted earlier on May 1, the coin demonstrates resilience, potentially challenging BLOCK BULL’s predictions.
The Ripple Labs Sentiment Anchor
Ripple Labs Inc., a firm specializing in blockchain payments, has recently garnered attention due to its increasing merger and acquisition activities.
Ripple made a $5 billion bid for Circle, which was ultimately declined by the stablecoin issuer, igniting speculation across the market.
There is ongoing speculation regarding the implications of this deal and similar transactions for XRP.
Given the favorable shift in regulatory concerns regarding XRP, Ripple Labs' recent initiatives may pave the way for greater adoption of its offerings, including XRP and the RLUSD stablecoin.
The potential for an increase in XRP's price is linked to a prospective long-term breakout.
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