$XRP
🚨XRP Price Outlook as Bear Flag Breakout Signals $1.60 Drop🚨
The daily timeframe chart for XRP price shows a bearish breakdown from a bear flag pattern. By losing support from the lower trendline of the flag’s parallel channel, XRP may now be poised for a steep decline below the psychological support level of $2. The breakdown also signals that the downtrend that commenced in mid-May could continue.
The temporary pause that created the flag’s ascending channel was caused by late buyers who missed the April-May bull run. If demand towards Ripple dries up even with recent developments in the Ripple vs. SEC lawsuit, a downward continuation could commence as bears seek to book profits due to uncertainty.
The breakdown could result in a 26% crash to $1.63 based on the flagpole’s height. Moreover, as XRP price lost the lower trendline support, sell-side volumes spiked to $172 million, the highest since May 30, as sellers flocked to the market.
Meanwhile, the Directional Movement Index (DMI) amplifies the bearish outlook as the -DI oscillates above the +DI. This indicates that the downward price movements are stronger than the upward movements, reinforcing the thesis that Ripple’s price may drop to $1.60.
This bearish outlook aligns with a recent CoinGape analysis noting that on the lower 4-hour timeframe, XRP hints at a drop below $2 as whales also begin to sell.
Conversely, the MFI indicator is rising and stands at 56. This suggests that the flag pattern’s breakdown could be a bear trap, and XRP price could reclaim the lower trendline as support. One of the bullish catalysts that could aid a reversal includes Ripple’s RLUSD growth ahead of the GENIUS Act vote on June 14.
