The XRP price looks to be on the verge of another breakdown that could send it spiraling to new multi-month lows. This comes after a failure to hold the support at $2.5 and the subsequent decline that has put it on a rather bearish path. If this bearishness continues, then it is more likely that the XRP price will end up retesting the $2.1 level soon, and a total failure would lead to a crash that could rival that of 2020, triggered by the SEC lawsuit.
Bears Have Trapped The XRP Price
In an analysis, crypto analyst Lingrid revealed that the XRP price is now under a lot of bearish pressure. The first sign of this is that the altcoin’s price has continued to decline within a well-defined downward channel, and this comes after the price was rejected near the resistance trendline below $2.44.
A direct result of this is that the XRP price is still seeing lower highs and lower lows, which is indicative that the sellers are still very much in control of the price. At this juncture, the analyst explains that the XRP price is currently still trapped under bearish pressure due to this.
From here, there are now a lot of things that could happen for the price. The first of these is that it continues to decline, eventually moving as low as $2.1. This would be where the next major support is for the price, and in this case, the price would have to maintain $2.1 and bounce if there is to be a recovery.
On the flip side, if bulls want to invalidate the bearish thesis, then they would have to get the price above $2.5. If the XRP price is able to break through this major resistance with momentum, then there could be a turn in the tide for the digital asset.
Factors To Watch Out For
Lingrid also highlights a number of factors that could set the XRP price up for another run. The first of these has to do with the Bitcoin price, which categorically controls the broader crypto market. If the Bitcoin price were to move, then it could take the XRP price with it and invalidate the bears.
Next on the list is for the XRP price to break above $2.45. In this case, the breakout would set it on the path toward $2.8, marking an over 10% increase from the breakout point. This also plays into the analysis of bulls maintaining support before a decline to $2.1.
Last but not least is the fact that there would be some unexpected news in the market. This could have to do with regulatory issues or liquidity events that end up throwing the short-term technical flows off balance, while the market figures out the next direction.
Featured image from Dall.E, chart from TradingView.com
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