XRP is showing similarities to a previous trend from April-June 2021, which resulted in a 65% price decline in the following months.
The recent double-digit percentage gains for XRP may be reaching a point of exhaustion, reflecting the overall trend in the cryptocurrency market.
The optimism surrounding Ripple’s partial win against the SEC has led to bullish predictions of XRP reaching as high as $15 in the coming months.
Fractal analysis of XRP’s candlestick and price momentum patterns suggests that a sharp market correction could occur, especially if history repeats itself.
Certain market signals, such as the multiyear descending trendline resistance and an overbought RSI, are flashing again, indicating potential risks for XRP.
If a market correction occurs, XRP’s price could fall towards the lower trendline support near $0.52 by September, representing a nearly 40% decline from current levels.
However, there is a possibility of a bounce around the 50-week exponential moving average, which served as a support level during the price decline in Q2 2021.
As of July 20, XRP’s price is up 70% month-to-date, outperforming the broader crypto market.
This article does not provide investment advice and readers should conduct their own research before making any decisions.
