Will XRP Price Breach $0.50 Again? Analyst Flags Weak Buyers Support

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As a seasoned crypto investor with over a decade of experience in this rollercoaster ride, I find myself at a crossroads with Ripple (XRP). The recent price action has been reminiscent of a game of chess between the bulls and the bears, with neither side gaining a decisive advantage.

During U.S. trading hours on Tuesday, the price of XRP experienced a minimal increase of 0.07%. Over the past week, the Ripple coin has been generating a string of inconclusive candles in its daily chart, suggesting neither buyers nor sellers have taken control. This prolonged consolidation near a long-standing resistance level indicates a crucial juncture for this asset, where it could potentially experience a significant breakout or reversal.

XRP Price Faces Major Breakdown as Analyst Points to Weak Buyer Support

During a two-month period of consolidation, the XRP price has made repeated, unsuccessful attempts to break through the upward sloping resistance trendline that forms part of a symmetrical triangle pattern. Since September 2021, these trendlines have functioned as both dynamic resistance and support, confining the fluctuations in the XRP price within a relatively narrow band.

Even though XRP‘s price has temporarily dipped below its upper trendline, the fact that it hasn’t experienced a major drop suggests robust buying interest. Continuous attempts to surpass this trendline may eventually diminish resistance, potentially leading to a clear breakout in the near future.

Will XRP Price Breach $0.50 Again? Analyst Flags Weak Buyers Support

crypto expert Jack shared a comparable optimistic viewpoint to his 136.7K followers on platform X (previously known as Twitter), expressing his opinion in an engaging and distinctive way. In one of his posts, he cautioned about an upcoming decrease in the value of XRP, predicting:

In simpler terms, the collapse may be severe when the crypto coin $XRP falls. It would be prudent to exercise caution at that point.
He further added, “The trendline is super weak & the distribution is too long.

Upon further scrutiny of the provided image, I discovered that JACKIS had mistakenly posted an inverted XRP price chart. When righted, this chart indicates a different scenario – a potential breach of the prolonged resistance trendline, hinting at an impending surge towards the $1 threshold.

In simpler terms, the collapse of this cryptocurrency, XRP, could be quite dramatic. It would be prudent to prepare for potential losses when it experiences a downfall.
The trendline is super weak & the distribution is too long
— JACKIS (@i_am_jackis) September 23, 2024

Whale Selling May Stalls $0.60 Breakout

Based on Santiment’s findings, the number of significant XRP holders with between 100 million and 1 billion coins (represented by the yellow line) has noticeably decreased over the last year. This pattern in the distribution of ‘whales’ is often associated with market peaks or extended periods of correction for an asset.

If the latest price drop has dipped below the 200-day Exponential Moving Average (EMA) line at $0.55, there’s a possibility that sellers may initiate another downtrend within a triangle configuration. After this breakdown, the asset might decrease by approximately 20% to revisit the lower support trendline around $0.4.

Additionally, if the Securities and Exchange Commission decides to challenge its decision, it could extend the ongoing court case and potentially hinder the long-term stability of XRP prices at elevated levels.

Will XRP Price Breach $0.50 Again? Analyst Flags Weak Buyers Support

Conclusion

In light of XRP‘s prolonged price consolidation, it might be more strategic for potential buyers to respond rather than initiate moves. A clear breakout above the resistance of the triangle is essential to signal the conclusion of the accumulation phase. If this doesn’t happen, the sideways trend could continue, potentially resulting in another price reversal.

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2024-09-24 19:24