Can the Altcoin Slip Below $2 Again?
Ripple (XRP) is at risk of falling below $2 after falling 12% over the past week. This potential decline is highlighted by technical indicators identified in recent XRP analysis, indicating growing bearish pressure.
A few days ago, XRP climbed to a yearly high of $2.73, sparking speculation of a return to $3. But this prediction may be delayed, and here’s why.
Ripple loses momentum
Relative Strength Index (relative strength index), which Gauge momentumis an indicator that XRP price may fall. RSI also shows whether an asset is overbought or oversold. When the reading is above 70.00, it is overbought, and when the reading is below 30.00, it is oversold.
On December 2, the RSI on the daily chart of XRP/USD hit 96.25, indicating that it was in an overbought state. This is also consistent with the coin’s local top.
As of the time of writing, XRP price analysis shows that readings have fallen below the 50.00 neutral zone, indicating that the momentum around it is now bearish. As transaction volume decreases, XRP may continue to fall Below $2.34 in the short term.
Apart from the RSI, the Momentum Oscillator (AO) is another indicator that suggests XRP may fall below the current threshold. AO is a momentum indicator used to compare recent market movements to historical trends.
It uses a zero line in the center and plots the price action on the sides based on comparing two different moving averages to check whether the momentum is bullish or bearish. When AO is positive, the momentum is bullish Bearish when indicator reading is negative.
At press time, AO was positive. However, the indicator flashed red bars, indicating that the bullish momentum surrounding the altcoin is fading.
XRP Price Prediction: Lower Lows
On the 4-hour chart, XRP has formed Head and shoulders pattern. This pattern is a classic bullish to bearish reversal pattern. It consists of three peaks: the left shoulder, then the higher peak (the head), then the lower peak (the right shoulder).
Draw a “neckline” by connecting the lowest points of two wave troughs. The slope of the neckline can be up or down. However, a downward slope usually indicates a more reliable reversal.
As seen below, the price of XRP has fallen below the neckline at $2.40, indicating weak buying. If the bulls fail to reverse this trend, the coin could drop to $1.87. However, if Buying pressure If XRP increases, XRP may climb to $2.90.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
