They add: “On May 16, 2022, XRP broke below the support trend line of the triangle, accompanying a decent increase in trading volumes. The move confirmed the descending triangle as a bearish reversal indicator. Meanwhile As a technical analysis rule, XRP is now at risk of extending its bearish move by as much as the maximum height of the triangle when measured from the breakout point, as shown below.”
Ripple is the fifth cryptocurrency by market capitalization. Analysis indicates that by July XRP could fall to $0.18, a drop of almost 40% from the price it had on June 1.
XRP’s bearish setup comes amid a general slump the crypto market is going through, with some tokens currently trading more than 90% below their all-time highs set last year.
The violent nosedive began in May after Terra (LUNA), now known as Luna Classic (LUNC), a $40 billion “algorithmic stablecoin” project, collapsed due to its system failure keeping it pegged with The U.S. dollar. This debacle found its match at Celsius Network, one of the largest crypto lending platforms, which unexpectedly paused crypto withdrawals in June due to “extreme market conditions.”
Since then, the cryptocurrency market has faced one bad news after another, from the potential insolvency of crypto hedge fund giant Three Arrow Capital due to bad debts and risky trades to the suspension of withdrawals by crypto lender Babel Finance. due to liquidity problems.
Macroeconomic risks also favor the downside outlook for XRP with the Federal Reserve raising interest rates by 0.75% on June 15, ensuring less liquidity for investors to speculate on risky assets.
Nonetheless, Kevin Cage, who runs Iron Key Capital, a cryptocurrency-focused hedge fund, says that XRP will “survive” the bear market.
Meanwhile, Bleeding Crypto says that XRP could drop towards $0.17, but anticipates that the token would experience a sharp rebound after reaching said level.
“Looks like it may go for a full reset of this last bull run,” he wrote, hinting that XRP would recapture the $1.95 and $1.98 range during the next trend reversal.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Source: Ambito
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