XRP Plummets 85% from Six-Year High: Analyst Predicts Further Drop In Value

Ripple’s (XRP) future is uncertain as it faces a steep decline and mixed technical signals. Market analyst Northstar notes its dramatic fall from over $3 in Jan 2018 to around $0.48 recently, an 85% drop that raises questions about its long-term sustainability.

Northstar highlights a long-term symmetrical triangle pattern on the bi-weekly XRP chart, showing difficulty regaining momentum since its 2018 peak.

Multiple failed attempts to break resistance have led to a recent fall below the $0.55 support line, indicating increased selling pressure and suggesting a potential further decline to $0.30, nearly a 40% drop from current levels.

XRP experienced a breakout from a smaller symmetrical triangle, surpassing the upper trendline and reaching resistance near the middle Bollinger Band at $0.65 after its decline from $0.93 last July.

However, a recent market-wide correction has pushed XRP back to test the upper trendline, now serving as support at $0.48. It is crucial for XRP to defend this support level to avoid falling back into the symmetrical triangle and risking further decline.

The Stochastic Momentum Index (SMI) shows a downward trend, reflecting waning buying interest. If XRP fails to break the $0.52 resistance, the $0.4270 support identified by the lower Bollinger Band becomes critical. Breaking this level could trigger a drop to $0.30.

Trends In XRP Prices

Santiment data shows a link between price volatility, active addresses, and XRP’s price changes. Historically, high volatility and active addresses on the Ripple network have matched significant price swings, both up and down.

For example, during the late 2017 to early 2018 bull run, substantial price increases occurred alongside heightened volatility and over 200,000 active addresses. Similarly, the mid-2021 price decline after reaching $1.96 mirrored spikes in these metrics.

Santiment’s data suggests possible upcoming price changes with active addresses around 25,900 and moderate volatility. Historically, such trends have preceded notable price movements.

XRP faces a crucial moment. The current technical setup, showing the breakdown of two symmetrical triangles, suggests a possible bearish trend or consolidation phase. Key support and resistance levels to watch are $0.40 and $0.52. Falling below support might lead to a decline towards $0.30, while reclaiming resistance could lead to a rise to higher levels.

However, the historical link between volatility, active addresses, and price movements suggests potential momentum shifts. Increased activity and volatility might lead to significant price swings for XRP soon.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.