What’s Next for XRP Price After the Breakdown of 15-Month Support?
Highlights
- A support trendline breakdown hints at a 15% downside risk for XRP.
- A bearish crossover between the 20-and-200-day EMAs accelerated the supply pressure in the market.
- The intraday trading volume in the XRP is $2.31 Billion, indicating a 51% loss.
Last weekend was aggressively bearish in the cryptocurrency market attributed to geopolitical tension between Iran and Israel. Bitcoin plunged to a low of $61500 and prolonged correction of the majority of altcoins including XRP. Within a week, the XRP price fell from $0.643 to $0.49, registering a 24%. This downtick breached below the support of a long-coming trendline indicating the potential for further downfall.
Also Read: 3 Altcoins To Buy For An XRP-Based Portfolio In 2024
Is XRP Price Heading Below $0.4?
Over the past nine months, the XRP price traveled a steady sideways trend resonating within two converging trendlines. The dynamic resistance and support continue to reduce the price spread reflecting no clear dominance from buyers or sellers.
However, this weekend the geopolitical issue in the Middle East triggered a sudden sell-off in the crypto market and plunged the XRP price below $0.5. On April 13th, the recent downturn in XRP’s price broke through the lower support trendline that had been in place since January 2023.
If this downward trend continues, XRP could potentially fall by 14.5% and retest the multi-month support level at $0.419. From a more pessimistic viewpoint, a further market correction could drive the price down to the $0.35 or $0.3 levels.
Also Read: Ripple Exec Reveals Why USDC/XRP AMM Pool Keeps Getting Out Of Balance
Will Bitcoin Halving Change Dynamic?
The highly anticipated Bitcoin halving event of the year is expected to occur around April 20th. This event, which occurs approximately every four years, will see the block reward for miners reduced from the current 6.25 bitcoins to 3.125 bitcoins per block. Historically, Bitcoin halvings have led to increased market interest and often a rise in price months later, driven by the decreased supply of new bitcoins if demand stays constant or grows.
Thus, the XRP buyers have an opportunity to fail this breakdown and regain control over this asset. If the coming week does not give suitable follow-up on the downside, the buyers may build recovery momentum and attempt to retake lost ground.
Technical Indicator
- Exponential Moving Average: The decline in the 20 and 50-day EMAs suggests that sellers are currently dominating the price movement of XRP.
- Relative Strength Index: The daily RSI position just above the oversold threshold suggests a potential minor rally may occur before further downward pressure resumes.
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