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XRP price entered a correction phase after reaching its highest level of the year at $0.938 on July 14th. Currently, the price is moving within a descending triangle formation, with a downward sloping resistance trendline and a support level at $0.669. The formation of this pattern has the potential to impact the future growth of the altcoin.
2 Scenarios for XRP Price
The recent market downturn in the cryptocurrency market caused the XRP price to drop by 21% in the past week, reaching $0.669, which is also the 50% Fibonacci retracement level. It was observed that the price found support at $0.669. This level is considered a strong support for buyers, and the long wick formations on the daily price chart confirm this. This situation may motivate buyers to actively defend the support point and trigger a reversal in the downtrend to break the overall trendline.
Due to the descending triangle formation occurring within a larger uptrend, it is more likely for the XRP price to surpass the resistance trendline and continue its previous recovery. In this scenario, after the breakout, the price is expected to aim for the recent peak level at $0.927 and even surpass the milestone at $1.015.
However, the ongoing correction in Bitcoin and the overall market sentiment putting pressure on altcoins may cause sellers in XRP to trigger a breakdown below the neckline of the descending triangle at $0.0669. This situation could increase selling pressure and cause the price to drop to $0.613 and potentially even the psychological support level at $0.6.
Directional Movement Index Signals a Downtrend
Some technical indicators also indicate increasing selling pressure on XRP. The Directional Movement Index (DMI) approaching the downtrend suggests a potential change in sentiment and continuation of the downtrend.
In summary, the current formation of the descending triangle pattern on XRP’s price chart indicates the possibility of a reversal in the downtrend towards the milestone at $1.015. However, if market conditions continue to put pressure on altcoins and the price falls below the neckline, it may result in a longer correction and the price could potentially drop to support levels at $0.613 and $0.6. Investors need to closely monitor the key support and resistance levels to determine the future direction of the altcoin.
