XRP price enters consolidation, Ripple risks plunging 48%
- XRP price has seen its momentum swing lower after recent weakness.
- Ripple could expect a 48% drop as the token approaches a critical support line.
- The dominant chart pattern projects a bearish target at $0.38.
The price of XRP continued to hit lower highs as Ripple failed to galvanize investor enthusiasm. The cross-border remittance token could now be at risk of a steep downside if it breaks below a critical defense line.
Downside Biased XRP Price Risk
XRP price has formed a symmetrical triangle on the daily chart, as Ripple continues to consolidate. Although the prevailing chart pattern confounds the forecast, the token could be on the verge of a 48% drop towards $0.38.
If XRP price breaks below the lower boundary of the guiding technical pattern at $0.72 which acts as crucial support, the aforementioned bearish target given by the prevailing chart pattern could be in sight.
The first line of defense for XRP price after a break below $0.72 is at the 78.6% Fibonacci retracement level at $0.68 and then at the July 28 low at $0.63, coinciding with the multi-month support trendline.
If the selling pressure continues to build, the price of XRP could drop to the June 26 low of $0.58 and then to the June 23 low of $0.52. Ripple may be able to find reliable support at the 127.2% Fibonacci retracement level at $0.48 before the bears attempt to reach the downside target.
XRP/USDT daily chart
However, if the bulls manage to reverse the period of underperformance, Ripple will encounter immediate resistance at the 61.8% Fibonacci retracement level at $0.75. Additional headwinds may emerge at the 21-day simple moving average (SMA) at $0.78 and then at the 50-day SMA at $0.83.
Greater aspirations will target the upper boundary of the symmetrical triangle pattern at $0.90. Investors should note that a break above the upper trendline of the prevailing chart pattern could lead to a 48% rise in the price of XRP. If the buying pressure continues to build, Ripple would encounter hurdles at $0.96, where the 100-day SMA and the 200-day SMA intersect.