Analyst Predicts Possible 40% Crash For XRP Price With Gravestone DOJI Candle Formation

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen bullish momentum turn sour more times than I can count. While I must admit that the recent breakthrough of XRP to the $1 mark was a sight to behold, my analytical instincts are warning me of potential trouble ahead.

It seems that the much-anticipated surge in the price of XRP might be nearing its conclusion, according to a crypto analyst’s forecast who predicts a 40% drop for this digital currency. Even though XRP has managed to breach the $1 mark with its recent bullish push, this analyst points out that XRP is exhibiting a Gravestone DOJI candlestick pattern, which suggests a bearish trend for the cryptocurrency.

XRP Price Expected To Crash 40% 

As an analyst going by the moniker ‘Without Worries’ on TradingView, I’ve taken a comprehensive look at the XRP market dynamics and have some insights to share. I foresee a potential 40% drop in XRP prices within the short term. This significant downturn could transpire in just a matter of days, marking a notable reversal from the recent peak prices that XRP has reached.

Based on insights from a TradingView crypto analyst, the price of XRP has experienced a remarkable 150% surge over the last ten days. This significant rise allowed it to reach the $1 mark for the first time in three years. However, despite these optimistic trends, the expert has identified various factors and technical signs that suggest an upcoming reversal in trend and potential price adjustment for XRP.

In the chart showing XRP’s price, an analyst spotted and verified a Gravestone Doji – a bearish pattern often seen near market peaks. This pattern hints at an upcoming price adjustment because it suggests that buyers, attempting to raise XRP’s price, were overpowered by strong sellers looking to cash out their profits.

“A potential sign that the XRP price might experience a substantial drop is the breakdowns in the Relative Strength Index (RSI) and Money Flow Index (MFI) support levels. The RSI quantifies the pace and fluctuations in an asset’s price activity, helping to identify whether it’s overbought or oversold. In contrast, the MFI takes into account both price and trading volume, showing where the capital is being directed.

In simpler terms, when the Relative Strength Index (RSI) of XRP experiences a breakout, it could indicate a shift in the market trend because the market may be overbought. On the other hand, if there’s a breakout in the Money Flow Index (MFI), as pointed out by the analyst, it means investors are pulling out their funds from that asset, which typically suggests decreasing buying enthusiasm.

More Factors That Suggest An Upcoming Crash

Previously noted, a financial analyst using TradingView forecasts a possible 40% decrease in XRP’s value. This would lower its current price of $1.11 to approximately $0.66. Moreover, this expert also pointed out that the price fluctuations of XRP at present are beyond the Bollinger bands, which are used to gauge an asset’s volatility.

According to the analyst’s findings, nearly all price fluctuations happen within the Bollinger bands. Therefore, when prices move beyond these bands, it typically indicates a return or adjustment towards the midpoint at $0.73. Additionally, he pointed out that the bands are starting to curve inward, implying that there might be fewer XRP buyers left, potentially leading to a price reversal.

Additionally, the TradingView crypto expert points out that most traders are either holding a long position or optimistic about XRP, which could indicate a reversal in its price prediction. Although there’s potential for XRP to keep rising, the current signs suggest it might not be likely.

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2024-11-20 00:40