Technical Pattern Suggests XRP Could Dip to $1.60Heres Why
XRP prospects of continuing its recovery from the April 7 low fade following the appearance of a bearish signal on its price chart. The fourth biggest cryptocurrency has made a remarkable effort over the past week to recover from the April 7 broader market downturn. Recall that the price of XRP plummeted to a low of $1.6401 on that day, closing below the $2 mark for the first time since December. Notably, XRP has recovered from this low, trading above the $2 mark.XRP Recovery Fizzling Out However, XRPs recovery may be fizzling out due to its price chart flashing a rising wedge breakdown. For context, a rising wedge is a bearish pattern that helps to identify potential trend reversal, particularly during an uptrend. This bearish pattern forms through the convergence of two upward-sloping lines, ensuring that the higher lows connect with the higher highs. Amid this convergence, should the price drop below the lower trendline, it would mark a shift from bullish to bearish momentum. Specifically, XRPs chart displayed the rising wedge breakdown on Wednesday. This bearish momentum indicates that buyers might be losing conviction in the asset, giving sellers control over XRP. Potential Crash to $1.6? Veteran investor Thomas Bulkowski, in his technical analysis theory, marked the starting point of the wedge as the initial support level following a breakdown. Based on this, XRPs support level stands at $1.60, meaning its price could retest this level in another market downturn. Another factor reinforcing XRPs bearish sentiment is that the coin has slipped below the Ichimoku cloud. This is a technical indicator that offers insights into an assets trend direction. Notably, when the price of an asset sits above the cloud, it indicates a bullish momentum. However, if it drops below the cloud, as observed in the XRPs hourly chart, it signifies a bearish trend.
Text source: The Crypto Basic
