How Low Can XRP Price Go After Falling Below $1.30?
The price of XRP (XRP) fell to $1.26 on Thursday, the lowest in more than 16 weeks. A bearish technical setup suggests that the pressure may extend into June.
XRP/USD Daily Chart. Source: Cointelegraph/Trading view
Main Receptors:
XRP's bearish pennant pattern breakout on weekly chart targets at $0.63.XRP sentiment hits three-week low, while net unrealized profit/loss data shows fears are rising and investors are in the water.
The XRP price breakdown is underway.
XRP is showing a number of bearish signals, including a falling MVRV ratio and XRP Ledger activity, which suggests that the price is. Very low price in the $1.40-$1.50 zone.
However, the recent drop has seen the XRP/USD pair break below this zone to enter the breakout phase of a bear pennant setup, as seen on the weekly chart below.
Related: XRP adds 4,300 new wallets in 24 hours, but why is the price stuck?
XRP dropped below the pennant trend low at $1.35, paving the way for a deeper move towards the measured chart pattern target at $0.63, a 50% drop from the current price.
XRP/USD Weekly Chart. Source: Cointelegraph/Trading view
XRP has become a “structural bullish” with its recent crash below $1.30, says analyst Egrog Crypto he said. In X's post on Thursday, he added:
“Underlying targets are $1.27, $1.1 and a potential cap of $0.88.”
XRP Daily Chart. Source: Egrag Crypto
Technical analyst ChartNerd he said. After breaching the support line at $1.30, the path is now clear to drop to $1 “sooner than later”.
XRP/USD Daily Chart. Source: X/ChartNerd
According to Cointelegraph reportedXRP's next major support level is now at $1.27. If this level is lost, the XRP/USDT pair may drop to $1.11 and test the $1 support.
The sentiment of XRP turns negative
According to data from Santiment, XRP's sentiment on social media has turned very negative over the past few days.
The Sentiment Positive/Negative Sentiment Indicator, which measures the ratio of positive to negative social media mentions for the cryptoasset, shows that XRP mass FUD is at its highest level in three weeks.
The ratio of positive to negative reviews has dropped to “1.1 positive reviews for every 1 negative review,” according to market intelligence. he said. Recently in X.
However, Sentiment has noted that such fear and uncertainty has historically served as a “contrarian signal for XRP's value.”
“When traders in social networks are too afraid, many weak hands have already been sold, reducing selling pressure and creating conditions for recovery.”
XRP Positive/Negative Sentiment Gauge. Source: Santiment
As the chart above shows, previous reversals into the “FUD zone” were followed by price stabilization or an increase shortly thereafter.
However, XRP's Net Unrealized Profit/Loss (NUPL) is oscillating between the capital and fear zones, suggesting that traders are still showing signs of panic.
XRP NUPL vs Price Performance Chart. Source: Glassnode
With more than 58% of XRP holdings underwater at current prices, there is still room for further losses based on past cycles. In the year Such configurations were preceded by major corrections in 2018 and 2021, raising the possibility of a similar pullback in the next few weeks.
