Market analyst EGRAG is convinced XRP is battling price manipulation, citing an unusual price drop that saw it crash by more than 7% below $0.60 in one hour.
The analyst pointed out this price crash while presenting an update to an earlier report. Recall that last month, EGRAG highlighted a descending channel on the 4-hour chart, noting that XRP had broken out of the channel and could drop further to retest the upper trendline of the channel.
XRP Inverse Head and Shoulders
According to him, this drop should serve as a positive development, resulting in the formation of a potential inverse head and shoulders structure. For the uninitiated, an inverse head and shoulders pattern typically signals a reversal of a downtrend, suggesting a shift from bearish to bullish momentum.
EGRAG has been monitoring the potential formation of this pattern since Nov. 24. As of Dec. 3, the projected drop materialized, but XRP did not retest the upper trendline of the descending channel with full conviction, having held up well at the $0.5943 support.
Despite this development, the inverse head and shoulders pattern took shape, owing to the price drop. Citing the bullish structure, EGRAG predicted that XRP could breach the resistance point at $0.6289 to extend its bullish momentum. The analyst set targets of $0.7000 and $0.7311.
Alleged Price Manipulation
Nonetheless, in his most recent update on XRP’s price movements, EGRAG identified a sharp decline in the asset’s price. Calling attention to the unusual 4-hour candlestick, the analyst asserted that the drop was due to price manipulation.
EGRAG’s assertion syncs with the sentiment within the broader XRP community. Interestingly, most community figures have vehemently contested that XRP’s price is a subject of manipulation from entities looking to benefit from the low value.
These theories allege that this sustained manipulation has led to price suppression. According to them, XRP’s underperformance in recent times despite gaining legal clarity is a product of this price suppression.
Notably, XRP is only 30% up from its value before the July 13 ruling. The cryptocurrency has also failed to capitalize on the ongoing market rally that has seen Bitcoin (BTC) reclaim $44,000. Despite the uptrend, XRP remains below $0.65, a concerning reality.
While most XRP community figures have dismissed these theories as unfounded, EGRAG’s recent disclosure adds more weight. Interestingly, yesterday, the unusual price decline saw XRP collapse 7.5% from $0.6391 to $0.5910 in one hour. The asset was looking to reclaim the $0.64 zone but eventually dropped below $0.60.
XRP had to start clawing its way back above the $0.60 level and restart its journey to $0.64. It eventually reclaimed the $0.63 territory, but witnessed a quick opposition. Now, the asset is battling to sit comfortably above $0.62, currently changing hands at $0.6195 amid a 0.27% drop today.