On Thursday, the XRP(XRP) value dropped to $1.26. This is its lowest price in more than 16 weeks. Technically, a bearish set-up suggested the pressure might extend to June.
Chart of XRP/USD for the day. Source: Cointelegraph/TradingView
Takeaways from the conference:
- On the weekly chart, XRP targets $0.63 with its bear pennant breakout.
- XRP’s social sentiment has hit a low of three weeks, and the Net Unrealized Loss/Profit data indicates that investors are in a downward spiral due to rising fears.
The XRP Bear Pennant is being broken down.
XRP displayed several bottoming indicators, such as a declining MVRV and increasing XRP Ledger Activity, that suggested the price had dropped. extremely undervalued within the $1.40-$1.50 zone.
As shown in the chart below, the latest decline has caused the pair XRP/USD to drop below the zone and enter the breakdown stage of its bear-pennant setup.
Related: XRP adds 4,300 new wallets in 24 hours, but why is price stuck?
XRP is now below the pennant’s lower trendline, at $1.35. It opens up the possibility of a further move towards the calculated target, at $0.63. A 50% decrease from the present price.
Weekly chart of XRP/USD Source: Cointelegraph/TradingView
XRP was “structurally bearish” Egrag crypto analyst Egrag has reported that Bitcoin is now trading below the $1.30 mark. said Additions to a Thursday posting on X
“The bearish targets are $1.27, $1.1 and a possible capitulation wick toward $0.88.”
XRP Daily Chart Source: Egrag cryptocurrency
ChartNerd is a technical analyst. said After breaching support at $1.30 the way is clear to a fall towards $1 “sooner rather than later.”
Chart for XRP/USD on a daily basis. Source: X/ChartNerd
Cointelegraph reportedXRP’s major next support level lies now at $1.27. XRP/USDT may fall to $1.11 if this support level is not maintained.
XRP sentiment turns negative
Santiment data shows that sentiment towards XRP on social media is now overwhelmingly negative.
Santiment’s Positive/Negative Indicator, which measures social media mentions that are positive or negative for a particular cryptoasset (XRP), shows the XRP Crowd FUD at its highest in three week.
Positive comments have dropped in proportion to negative ones. “just 1.1 bullish comments for every 1 bearish comment,” The market intelligence data provider said In a recent posting on X.
Santiment has pointed out however that in the past, such fear and scepticism have acted to create a “contrarian signal for XRP’s price,” adding:
“When traders across social media become overly fearful, many weak hands have already sold, reducing selling pressure and creating conditions for a rebound.”
XRP’s positive/negative sentiment metric. Santiment
Chart above shows previous dips of the “FUD zone” Immediately after, prices stabilized or bounced.
The Net Unrealized Loss/Profit (NUPL) for XRP is still oscillating in the fear zone and between capitulation, indicating that traders continue to show signs of anxiety.
Chart of XRP NUPL versus price. Source: Glassnode
You can also find out more about more than 58% of XRP holders underwater Based on previous cycles, it is possible to lose more money at the current price. In 2018, and in 2021 such setups preceded steep corrections. The possibility that a similar move will occur over the next couple of weeks is high.
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Source: cointelegraph.com
