Analyst Predicts Possible 40% Crash For XRP Price With Gravestone DOJI Candle Formation
The long-awaited rally in the XRP price may be coming to a fast end, as a crypto analyst has predicted a 40% crash for the cryptocurrency. Despite XRPs recent bullish momentum breakthrough to the $1 mark, the analyst has revealed that XRP is showcasing a Gravestone DOJI candlestick formation, signaling a bearish outlook for the cryptocurrency.
XRP Price Expected To Crash 40%
A crypto analyst identified as Without Worries on TradingView has released a detailed analysis of the XRP price action, projecting a 40% crash in the short term. The analyst emphasized that this 40% decline could happen in days, with XRP set to witness a significant reversal from its recent price highs.
According to the TradingView crypto expert, the XRP price action witnessed an impressive 150% gain over the past 10 days. This price increase fueled its rise 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 imminent trend reversal and price correction for XRP.
In the XRP price chart, the 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 Gravestone DOJI candle indicates that buyers who had tried to push the price of XRP higher were significantly overwhelmed by sellers set on profit-taking.
Another indicator that suggests that the XRP price could be preparing for a significant correction is the Relative Strength Index (RSI) and Money Flow Index (MFI) support breakouts. The RSI measures the speed and changes in an assets price movements, indicating whether it is overbought or sold. On the other hand, the MFI considers both price and volume, highlighting where the money is flowing.
A support breakout in XRPs RSI signals a potential trend reversal due to an overbought market. A breakout in MFI, which the analyst has stated is a very noteworthy indicator, suggests that funds are leaving an asset, ultimately signaling weakening buying pressure.
More Factors That Suggest An Upcoming 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 factors above, the market expert has stated that XRPs price action is currently outside the Bollinger bands, which measure an assets price volatility.
The analyst has revealed that 95% of price actions occur within the bands. Hence, prices outside the Bollinger bands often signal a pullback or correction toward the mean point at $0.73. Moreover, he noted that the bands are curving inwards, suggesting that XRP buyers may be exhausted, increasing the likelihood of a price reversal.
Furthermore, the TradingView crypto analyst highlighted that most traders are either long or bullish on XRP, which is a contrarian signal for the cryptocurrencys price outlook. While he acknowledges a possibility for a continuous upward trend for XRP, the analyst has also noted that present indicators suggest a low probability.
Read more: https://www.newsbtc.com/analysis/xrp/xrp-price-doji-candle-formation/
Text source: NewsBTC
