XRP price technical breakdown boosts chances of a 40% drop by July

XRP price stares at potential losses in the coming weeks as it breaks out of a “descending triangle” pattern, with its bias skewed toward the downside.

Major XRP breakdown underway

To recap, XRP started forming the technical structure after reaching $1.98 in April 2021, its second-highest level to date. In doing so, the token trended lower inside a range defined by a falling resistance trendline and a horizontal support trendline.

On May 16, 2022, XRP broke below the triangle’s support trendline, accompanying a decent increase in trading volumes.

The move confirmed the descending triangle as a bearish reversal indicator. Meanwhile, as a rule of technical analysis, XRP now risks extending its downside move by as much as the triangle’s maximum height when measured from the breakdown point, as shown below.

XRP/USD weekly price chart featuring ‘descending triangle’ breakdown setup. Source: TradingView

This could have XRP drop to $0.18 by July 2022, down nearly 40% from today’s price. 

Crypto carnage

XRP’s bearish setup appears amid a broader selloff taking place across the crypto market, with some tokens now trading more than 90% below their record highs established last year.

The…

Read more at cointelegraph.com

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