Crypto trader Alan Santana has shared a bearish outlook for XRP on TradingView. His analysis suggests a continued downtrend for the popular crypto.
Santana’s chart highlights key technical indicators that point to potential further price declines.
What you'll learn 👉
Descending Channel and Bearish Signals
Santana’s analysis reveals a descending channel formation for XRP. This pattern indicates a series of lower highs and lower lows. The trader emphasizes the significance of recent price action. Three consecutive bearish closes have strengthened the downward momentum.
Source: Alan Santana
A notable bearish signal emerged in the latest trading session. The day started green but reversed course and closed red. This pattern, following two red days, confirms bearish sentiment. It suggests that sellers have maintained control of the market.
Key Support Levels and Potential Targets
Santana’s chart identifies several critical Fibonacci retracement levels serving as potential support areas for XRP. The 0.382 level at $0.5529 is currently acting as immediate support.
Should this level fail to hold, the 0.618 level at $0.4871 becomes a crucial support within the descending channel. In a more bearish scenario, the 0.786 level at $0.4403 could provide stronger support if the price continues to fall.
The analyst predicts a possible move towards the lower trendline of the channel. His analysis points to a target around $0.3823, which aligns with historical support and the channel’s lower boundary.
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Extended Bearish Scenario
Santana’s analysis doesn’t rule out the possibility of an extended bearish scenario. In this case, he outlines deeper support levels that could come into play. The 1.236 Fibonacci extension level at $0.3149 represents the first support in such a scenario.
If bearish pressure intensifies further, the 1.382 extension at $0.2743 could be tested, indicating a more severe decline. In an extreme bearish case, Santana even considers the possibility of XRP reaching the 1.618 extension level at $0.2085. This could mean a move of around 65.44% from current levels.
Santana acknowledges that overall market conditions will influence XRP’s price action. A strong market-wide crash could push prices below predicted levels. However, he remains optimistic about long-term prospects. The analyst expects renewed growth after the current bearish wave subsides.
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