According to crypto analyst Chris McCrypto, XRP may retest the $0.45 level if Bitcoin’s price drops to about $57k. McCrypto claims that the technical indications on XRP’s chart are pointing to a short-term bearish outlook.
Since 2021, XRP has been trading in a symmetrical triangle pattern; its price swings between convergent trendlines. While the bottom support level rests about $0.45, the top resistance line floats close to $0.70.
In addition, this pattern usually denotes a consolidation phase preceding a breakout. Furthermore, XRP may make a move to the upside or fall when it gets closer to the peak.
Chris McCrypto’s chart analysis suggests that XRP may experience short-term weakness due to ongoing bearish signals from key technical indicators. The Stochastic RSI on the weekly timeframe is cooling off, pointing to reduced momentum.
Additionally, a bearish crossover is forming on the RSI, indicating that further downside pressure may occur before any bullish move can begin.
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Potential Impact of Bitcoin’s Decline
In his tweet, McCrypto highlighted the potential influence of Bitcoin’s price movement on XRP. He noted that if Bitcoin falls to around $57k, it could drive XRP down to the $0.45 level, which aligns with the bottom support of the symmetrical triangle.
Such a dip, while concerning for short-term traders, may also present a buying opportunity for those anticipating a bullish reversal in the long term.
The MACD indicator is also approaching a bearish crossover, reinforcing the likelihood of a price correction soon. However, McCrypto’s analysis suggests that this could be the final dip before XRP has substantial upward momentum, potentially breaking out of the triangle pattern.
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Traders Watch Key Support and Resistance Levels
Monitoring the key support and resistance levels will be very important as XRP’s price moves within the symmetric triangle. While a breakout over $0.70 may indicate the start of a new bullish trend, a movement below the $0.45 support could cause more dips.
For now, waiting for Bitcoin’s next action to validate XRP’s price trend will be worthy.
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