XRP is facing a downfall along with the rest of the crypto market.
Despite the bearish turn of events, Egrag remains bullish on XRP in the long term, maintaining that the potential bull run is still intact.
XRP is caught in a bearish storm, recently slipping into a descending channel pattern. Egrag, the prominent crypto analyst who first called attention to the pattern, predicts that XRP could drop to the January lows of $0.31 or soar to a $0.55 high.
#XRP Mini Descending Channel (0.55c – 0.31c):
A descending channel is a bearish trend that is characterized by a series of lower highs and lower lows.
We might be in a mini Descending Channel & bearish for the short term but the GRAND SCHEMA is stil intact, Nothing To Worry… pic.twitter.com/hFHH2BF4g0
— EGRAG CRYPTO (@egragcrypto) May 11, 2023
An XRP daily chart shared by Egrag shows that XRP descending channel began forming in late March after its latest solo rally. As previously reported by The Crypto Basic, XRP staged a massive rally on March 21. The run saw XRP surge by over 56% in 8 days to a high of $0.5850 on March 29.
After reaching the high of $0.5850, XRP encountered resistance and started to experience intermittent declines, leading to the formation of the present descending channel.
A descending channel is a pattern formed on a chart when an asset’s price moves lower consistently between two downward-sloping parallel trendlines. The upper trendline connects the price highs, while the lower trendline connects the price lows.
XRP’s descending channel is considered a bearish trend for the asset, as it indicates a consistent pattern of lower highs and lower lows over time, as shown by the downward-sloping trendlines. This can suggest that sellers dominate the market, as the price decreases with each new high.
XRP Can Break Out Either Way
According to Egrag, although the channel formation is a bearish signal, XRP can break out to the upside or downside.
If XRP breaks out to the upside, it could reclaim the $0.55 level, which it has not touched since March 30. Conversely, if the breakout is to the downside, it could result in a 25% drop to $0.313. The last time XRP traded at this low was on Jan. 2.
Egrag emphasized that XRP’s potential for a long-term rally remains valid despite the current bearish trend, which is only a short-term condition. As The Crypto Basic previously highlighted, last week, Egrag predicted that XRP would reach $10 or $27 by 2025 based on the asset’s current position.
Currently, XRP is trading at $0.4202, representing a 9.77% decline over the past week. While the recent market downturn has affected XRP, the asset has avoided significant intraday losses in the past two days and has even recorded modest gains. However, as of today, XRP is down by 2.53%.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.