XRP made a bearish breakout in the last few days, hinting at a continued price drop.
- XRP was down by more than 4% in the last seven days. If the downturn continues, then the token might drop to $0.4699.
XRP has witnessed quite some turbulence as its price has dropped over the last week. But investors should prepare for more setbacks as the token fell below a pattern, that hinted at a further price drop.
Bears step up
Per an earlier AMBCrypto report, XRP’s price had reached a 2-month low. This decline was caused by market jitters following reports that Ripple, the token’s developer and largest holder, sold 150 million XRP.
According to CoinMarketCap, the price decline continued as the token’s value dropped by over 1.3% in the last 24 hours.
At the time of writing, the token was trading at $0.4932 with a market capitalization of over $27 billion. The price decline also had a negative impact on the token’s price action.
Santiment’s data revealed that XRP’s Weighted Sentiment went into the negative zone, implying that bearish sentiment around the token was dominant in the market.
Nonetheless, the massive price drop stirred up conversations in the market, causing its Social Volume to spike.
Source: Santiment
In a further spot of bad news, while XRP’s price dropped, it made a bearish breakout, which hinted at a continued price decline.
Notably, XRP’s price entered a pennant pattern in the middle of April. Since then, the token has consolidated inside the pattern, only to make a bearish breakout on the 8th of June.
Source: TradigView
Will XRP continue to fall?
AMBCrypto’s analysis of the token’s fear and greed index revealed that it had a value of 34% at press time, indicating that the market was in a “fear” phase.
Whenever the metric reaches that level, it suggested that there are chances of a price increase. Therefore, to better understand what to expect, AMBCrypto analyzed the token’s daily chart.
As per our analysis, the technical indicator MACD displayed a clear bearish advantage in the market. The token’s Relative Strength Index (RSI) also registered a sharp downtick, hinting at a further price drop.
Nonetheless, the Chaikin Money Flow (CMF) looked optimistic as it went slightly northwards.
Source: TradingView
AMBCrypto then assessed Hyblock Capital’s data to look for possible targets for XRP this week.
Read Ripple’s [XRP] Price Prediction 2024-25
If a trend reversal happens and the token gains bullish momentum, investors might witness the token reclaim $0.545.
Generally, high liquidations result in short-term price corrections. On the other hand, if the token remains bearish, then XRP might drop to $0.4699.
Source: Hyblock Capital
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