- The price of XRP could be on the verge of further losses as it reaches the breaking point.
- Cutting below $ 0.80 could spell trouble for the bulls as Ripple could be vulnerable to a 38% drop.
- To nullify the bearish outlook, XRP would need to regain $ 0.85 as support.
The price of XRP is on the verge of a further collapse as Ripple approaches a critical support line. Cutting below the crucial defense line could see the token drop 38%, hitting $ 0.49 if momentum does not shift upward.
XRP price on the verge of further decline
The price of XRP has formed a parallel channel pattern on the daily chart as the token continued to consolidate. Ripple is approaching the lower bound of the ruling technical pattern at $ 0.80, which acts as crucial support. If the token is cut below the aforementioned defense line, it could face a massive decline.
The prevailing chart pattern suggests a 38% drop from the downtrend line, projecting a bearish target of $ 0.49.
XRP price will discover multiple areas of support before the bears attempt to push prices down towards the bearish target. Ripple will find its second line of defense at the August 9 low at $ 0.76. An additional support point will appear at the July 12 high at $ 0.65, then at the multi-month ascending support trend line at $ 0.60.
An increase in selling pressure could push XRP price towards the June 25 low of $ 0.58, then towards the 78.6% Fib retracement level at $ 0.55 before Ripple hits the parallel channel’s projected bearish target. .
XRP / USDT daily chart
However, if XRP price manages to stay above the lower bound of the ruling technical pattern at $ 0.80, Ripple may nullify the bearish forecast by claiming higher levels, starting with the 61.8% Fibonacci retracement level at $ 0.85.
If a surge in buy orders occurs, the price of XRP may target the 21-day Simple Moving Average (SMA) at $ 0.93, then the 200-day SMA at $ 0.95.
Larger aspirations will target the middle limit of the parallel channel at $ 1.02, then the 50% retracement level at $ 1.06, which intersects the 50-day 100-day SMA.