The daily timeframe chart of XRP price shows a bearish breakdown from a bearish flag pattern. By losing the support of the lower trend line of the parallel channel of the flag, XRP could be about to experience a sharp drop below the psychological support level of $2. This breakdown also indicates that the bearish trend that started in mid-May could continue.
The temporary pause created by the ascending channel of the flag was caused by late buyers who missed the bullish spike of April-May. If demand for Ripple decreases, even with the recent developments in the lawsuit between Ripple and the SEC, a downward continuation could begin, as bears seek to take profits due to the uncertainty.
The drop could result in a decline of 26% down to $1.63, according to the height of the pole. Additionally, by losing the support of the lower trend line, XRP's price saw sales volume surge to $172 million, the highest since May 30, thanks to the massive influx of sellers into the market.
Meanwhile, the Directional Movement Index (DMI) amplifies the bearish outlook, as the -DI oscillates above the +DI. This indicates that bearish price fluctuations are stronger than bullish ones, reinforcing the hypothesis that Ripple's price could fall to $1.60.
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