XRP Price Dips Below $0.5, Indicating Potential Bearish Trend and Support at $0.48

XRP Price Dips Below $0.5, Indicating Potential Bearish Trend and Support at $0.48

Crypto News – The XRP price has experienced a drop below the $0.5 mark, confirming a breakout of a triangle pattern. This breakout suggests a potential downward trend, possibly leading to a sell-off towards $0.33 if the support at $0.48 weakens further.

Just a week after reaching $0.55, the value of the cross-border money remittance token, XRP, has fallen by 2.5% in the last 24 hours, now trading at $0.486 as of Tuesday.

This bearish trend is not unique to XRP alone; Bitcoin has decreased by 2.2%, struggling to stay above $27,000, while Ethereum has also seen a 2.2% decrease, dropping below $1,600 and currently trading at $1,556.

The XRP community is expressing concerns regarding Ripple’s management of the escrow account. Despite Ripple’s claims of non-interference with XRP’s market performance, questions have arisen due to the company’s decision not to sell a significant portion of its monthly XRP allotment from the escrow account. Critics suggest that this move, despite regulatory approval, might indirectly influence and bolster the XRP price.

One vocal critic, Alter Diego, highlighted the relatively low sale of escrowed XRP, indicating that Ripple’s actions, or lack thereof, shed light on the coin’s nature. Meanwhile, XRP enthusiast Julian Williams argued that regardless of Ripple’s actions, selling the entire monthly allotment or not, the company would still face criticism for “dumping” XRP.

Predicting the Future of XRP Price as $0.5 Transitions to Resistance

The XRP price is on the verge of a significant breakdown following the confirmation of a symmetrical triangle pattern on the daily chart. Additionally, the XRP token remains below all three major moving averages, including the 21-day EMA, the 100-day EMA, and the 200-day EMA.

The Relative Strength Index (RSI) has dropped back below the midline and is heading towards oversold territory, retracting from the previous climb towards the overbought region at 60. If the bulls fail to strongly defend the immediate support at $0.48, the likelihood of an immediate recovery significantly decreases.

If a recovery does not materialize at the $0.48 mark, holders might consider shifting their investments to other altcoins. The presence of the confirmed triangle pattern suggests that the XRP price could decline by as much as 34% from the breakout point at $0.51 to reach $0.33.

Preserving the support at $0.48 would play a crucial role in averting a sell-off, giving the bulls an opportunity to regroup and attempt another recovery above the $0.5 mark.