If This Support Breaks, XRP Could Retest Its Previous ATH

5 thg 12, 2024

1. Pattern Formation:
- XRP is forming a descending triangle or a bearish pennant. This pattern often signals a potential continuation of the downtrend, especially if there is a breakout to the downside.
- The pattern emerged after a significant price rally, which is typically a consolidation phase before the prevailing trend resumes.

2. Support and Resistance Levels:
- The key support level is around 2.2$. If this level is breached, the price is likely to drop further.

3. Downside Targets:
- Target 1: If the price breaks below $2.2, the first potential target is around $1.97, reflecting a 15.32% drop from the breakout point.
- Target 2: If bearish momentum continues, the price could fall further to around $1.6, representing a 29.12% decline.

4. Volume Analysis:
- A breakout accompanied by significant trading volume will be a strong confirmation of the direction. A high-volume breakout below support strengthens the bearish case.

5. Larger Timeframe:
- On a higher timeframe, there appears to be a potential HnS pattern forming. This is another bearish indicator, adding to the likelihood of continued downward movement.

Conclusion:
- If XRP breaks below the $2.2 support, the price is likely to decline toward $1.97 and possibly further to $1.6.
- However, if the price bounces off the support and breaks above the pennant's resistance, a bullish reversal scenario could emerge.