The XRP retreated on Monday, reached a significant support level and indicated the capacity for further decline in the coming days.
Ripple (XRP) fell to $ 2.40, about 30% from its highest level this year, officially placed it in a bear market.
The sold-off crypto coincides with widespread weakness in the market, as Bitcoin (BTC) remained below $ 100,000. Crypto Fear and Greed Index have fallen into the Fear Zone at 38, while the Altcoin season index has also declined.
Technical suggestions that XRP value may crash further
The XRP faces the risk of additional damage in the near period. The daily chart shows that the price has fallen below the 50-day and 100-day moving average, indicating a recession that the sellers are under control.
Additionally, XRP has created a head and shoulder pattern, which consists of two shoulders, a neckline and one head. The price has now fallen on the slanded neckline, aligning with a strong axis of the Murre Math lines.
As a result, a strong recession is likely to break, $ 1.79 with the next reference level, the lowest swing this month. A step below this level can open the door for further decline, with the next support at $ 1.6130, 61.8% Fibonacci conform to the retracement level.
If XRP rebounds the XRP above the weak stop-and-reverse level at $ 2.735, the recession attitude will be invalid.
Wyckoff theory further points to the negative side
The other risk is that the XRP price is gone to the distribution phase of the Wyckoff theory.
The weekly chart indicates that the coin remained in the accumulation phase for most of the time of the previous year, characterized by value action. After this, the markup phase entered the markup phase in November, increased by more than 400%.
Now, the XRP has gone to the distribution phase. A break under the neckline of the head and shoulders pattern will confirm its transition in the markdown stage, marked by the increased supply, low demand and the sale of nervousness between investors.
There are some potentially rapid catalysts in the XRP value that can help in reversal. For example, decide by SEC to eliminate the coinbase And Robinhood’s trial is an indication that it will do the same for Ripple.
The crowd is increasing that the Securities and Exchange Commission will approve XRP ETF. in odds It has increased by 80%, which means that the agency can approve funds, which JP Morgan estimates that this year will attract more than $ 8 billion in the fund.
