XRP price has collapsed into a technical bear market after falling by over 35% from its highest point this year. This crash has coincided with the ongoing crypto market plunge that has hit Bitcoin and other tokens. This article provides a Ripple price forecast and what to expect.
XRP Price Technical Analysis
The daily chart reveals that the XRP price has plunged into a bear market. Most of this decline happened on Friday when it briefly plunged to a low of $1.7768, its lowest level since November last year.
Like other altcoins, the XRP token bounced back as investors bought the dip. This rebound, however, faced rejection at the 200-day Exponential Moving Average at $2.6292. That is a sign that the coin has moved into a dead-cat bounce, which is a brief rebound that leads to more downside.
XRP price has also formed a break-and-retest pattern by moving closer to the resistance point at $2.6530. Retesting that important level is notable because it often indicates a continuation sign.
The Ripple price is also attempting to form a death cross pattern, which occurs when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. This pattern often leads to more downside over time.
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XRP price has also invalidated the impulse phase of the Elliot Wave pattern. Therefore, the most likely scenario is where it continues falling, with the main target being at $1.7768, which is about 26% below the current level. On the flip side, a move above the resistance level at $2.65 will point to more gains over time.
What Will Boost the Ripple Price?
Still, the XRP price crash is not guaranteed as the token has three main things that may boost its performance. First, approval of multiple XRP ETFs will be bullish for the coin as it will lead to more demand.
This approval will likely happen when the government shutdown ends. However, the risk is that the approval may already have been priced in by market participants.
Second, another catalyst is that the Ripple USD (RLUSD) stablecoin is approaching $1 billion in market cap. This robust growth makes it one of the fastest-growing stablecoins in the crypto industry.
Finally, XRP price will rebound if Bitcoin bounces back from the ongoing crash. Such a move will lead to more demand for altcoins like XRP and Solana.
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