Crypto Michael, a prominent trader and Bitcoin investor, reported a significant technical breakdown in $XRP, highlighting that the cryptocurrency has lost a key support level and dipped below the $1 mark.
XRP slips through major support zone
Crypto Michael shared an updated chart of XRP/USD, focusing on a descending triangle formation that had constrained price movements in recent weeks. The chart, based on four-hour data from Binance, depicted a descending resistance line and horizontal support near $1.25.
From late September to early November, XRP oscillated between these two boundaries. The descending resistance limited upward attempts, while the $1.25 mark provided consistent support.
In early November, however, XRP breached the $1.25 support level, triggering increased selling pressure and further declines. At the time of Crypto Michael’s update, the chart showed XRP trading near $0.99, confirming a decisive move below both the $1.25 floor and the $1 threshold.
XRP’s drop below $1.25 marks the loss of a crucial support level, with selling pressure pushing the price under $1 for the first time in recent weeks.
This price action raised questions about the validity of the previously identified chart pattern and whether a reversal is likely in the near term.
Market outlook and criticism of predictions
Crypto Michael’s updated analysis sparked criticism from several users who questioned earlier bullish predictions about XRP’s performance. Zdenek Steiner, a social media commenter, asked why the analyst had previously expressed confidence in an imminent upward breakout and later failed to acknowledge the missed forecast.
Another commenter argued that analysts often hedge their outlook by suggesting price could break in either direction, thus avoiding accountability for incorrect calls.
Investor JayDee added that traders should initially label such formations simply as triangles, and only describe them as ascending or descending after the breakout direction is established. This observation underscored the importance of waiting for clear market confirmation before concluding the direction of chart patterns.
Mini dictionary: Descending triangle, a bearish chart pattern characterized by a series of lower highs and a horizontal support level. It signals potential further declines if the support is broken, as sellers increasingly outweigh buyers.
Further bearish predictions emerge
Amid ongoing debates, another analyst using the name ThechosenOne projected that XRP could see further declines. The commentator stated that selling could extend until the price reaches holders from previous cycles, estimating a target between $0.30 and $0.50 before any substantial recovery is likely.
This forecast reflects a more pessimistic outlook, placing XRP’s possible downside significantly below its current trading levels.
A bearish community outlook has emerged, with some speculating that XRP could soon test support as low as $0.30 to $0.50 before stabilizing or rebounding.
Despite documenting the breakdown, Crypto Michael did not specify a new downside target or clarify when he expects any recovery for XRP, leaving traders watchful for further updates.
