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XRP ‘bulltrap’ hints at epic crash below $0.40

source-logo  finbold.com 17 April 2024 12:33, UTC

Though hopes remain high for a rally toward $1, XRP has, without a doubt, been in a precarious position for multiple years.

Indeed, the legal battle between the SEC and Ripple Labs has been casting a large – and often dark – shadow upon the token generally serving as a major limiting factor to its uptrends.

Due to the regulatory pressure and despite the hopes and several breakout attempts, XRP has so far failed to truly take off amidst the 2024 crypto market rally and, according to one expert, is likely to continue trading lower.

Crypto analyst known as CoinsKid on X recently opined that despite XRP appearing to be turning its bulltrap into a beartrap, the more pessimistic outlook bears more merit.

According to the expert, the bulltrap failed to lead to a higher high while the apparent beartrap yielded a lower low, which indicates that a further downside is a more likely scenario for XRP.

The potential decline, backed both by an earlier analysis from January and the current Fibonacci retracement support levels, indicates that the token could drop as low as $0.38 if not even further toward $0.3 over the course of five waves.

What is next for XRP?

Technical analysis (TA) for XPR retrieved from TradingView on April 17 apparently corroborates CoinsKid’s forecast. Across the daily, weekly, and monthly performance, the token retains an overall ‘sell’ rating.

Furthermore, when based on any of the three time frames, moving averages (MA) rate XRP as a ‘strong sell.’ Finally, oscillators are similarly bearish, generally reading ‘sell’ though they do flip to ‘neutral’ when the analysis is based on the last 24 hours of trading.

XRP price chart

Given XRP’s recent performance, the generally bearish outlook offered by technical analysis is not particularly surprising. Indeed, despite seemingly entering a strong rally – leading some to predict a surge toward $1.31 – late in February and early in March, the token is 19.99% in the red since the start of 2024.

The more recent performance only reinforces the bearish forecasts as the cryptocurrency declined 19.50% in the last 30 days of trading and 19.77% over the course of the week. XRP price today stands at $0.49088% after a 0.43% rise – albeit with significant volatility.

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