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The long-awaited rally in the XRP price It may end soon, as a crypto analyst has predicted a 40% crash for the cryptocurrency. Despite XRP’s recent bullish momentum breakthrough to the $1 markthe analyst has revealed that XRP is showing a Gravestone DOJI candlestick formation, indicating a bearish outlook for the cryptocurrency.
XRP price is expected to drop by 40%
A crypto analyst identified on TradingView as ‘Without Worries’ has done just that issued a detailed analysis of the XRP price action, with a 40% projection crash in the short term. The analyst emphasized that this 40% drop could happen within days, with XRP witnessing a significant turnaround of the recent price highs.
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According to crypto expert TradingView, the XRP Price Action witnessed an impressive gain of 150% in the last 10 days. This price increase caused an increase to the $1 milestone for the first time in three years. Despite these bullish developments, the analyst has highlighted several reasons and technical indicators that point to an upcoming trend reversal and price correction for XRP.
In the XRP price chartthe analyst identified and confirmed the Gravestone DOJI, a bearish candlestick pattern that appears during market tops and signals the potential for a price correction. The Tombstone DOJI Candle indicates that buyers who had tried to push up the price of XRP were significantly overwhelmed by sellers looking for profit-taking.
Another indicator that the XRP price could be preparing for a significant correction is the Relative Strength Index (RSI) and the Money Flow Index (MFI) support breakouts. The RSI measures the speed and changes in an asset’s price movement, indicating whether it is overbought or sold. On the other hand, the MFI takes into account both price and volume, emphasizing where the money flows.
A breakout of support in XRP’s RSI signals a potential trend reversal due to an overbought market. A breakout in MFIs, which the analyst believes is a very noteworthy indicator, suggests that funds are abandoning assets, ultimately pointing to easing buying pressure.
More factors pointing to an impending crash
As mentioned earlier, the TradingView analyst has predicted that the XRP Price May Crash by 40%, meaning the cryptocurrency could drop from its current value of $1.11 to $0.66. In addition to the above factors, the market expert has stated that XRP’s price action is currently off-price Bollinger bandsthat measure the price volatility of an asset.
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The analyst revealed that 95% of the price action takes place within the bands. Therefore, prices outside the Bollinger bands often indicate a pullback or correction towards the mean point of $0.73. Additionally, he noted that the tires curve inward, suggesting that XRP buyers become exhausted, increasing the likelihood of a price reversal.
Additionally, TradingView’s crypto analyst highlighted that most traders are long or bullish on XRP, which is a contrarian signal to the cryptocurrency’s price outlook. Although he acknowledges the possibility for one continued uptrend for XRPthe analyst also noted that current indicators point to a low probability.
Featured image created with Dall.E, chart from Tradingview.com
