XRP faces price crashing risks; $ 3 is the level for beat bulls, priced charts indicated
“You’re not bullish enough!” A enthusiastic XRP Exclamation to X last week after Ripple, which uses token for cross-border transactions, announced That the US Securities and Exchange Commission has dropped its case against them.
Many others share this disturbance, and it is obvious, as the end of this long legal battle has lifted the weight that counteract the performance of XRP compared to the broader market during the 2021 Bull Run. Plus, there is XRP ETF Hype and hope the token can be part of the US Strategic Reserve.
That said, the recent price action does not reflect the above optimization, with the key indicators of momentum that shines a major bearish shift in the trend, warning a well -known price slide in advance.
The XRP advanced more than 11% to $ 2.59 on Wednesday, stimulating the news on SEC. Since then, following by anything but bullish with range prices between $ 2.30- $ 2.50, In spite of optimism That is the expected tariffs of the trade discussion from President Donald Trump on April 2 may be more measured than the first expected.
Three-line Break chart
The first indicator of the bearish trend reversal is the three-line break chart, which focuses only on price movements while filtering short-term noise, which helps identify trend changes such as the market suggests and is not arbitrary/deciding trading rules.
The chart is made up of vertical blocks called lines or bars (green and red). A bull’s reversal occurs when a green bar occurs with prices moving higher than the highest point of the last three red bars. On the other hand, a bearish shift is represented by the emergence of a new red bar beyond the lowest point of the past three green bars.
In the case of the XRP, a new red bar took place early this month in the weekly time of time and held the full news following the SEC news. The “weekly” aspect means that this chart combined -the price information included within a week.
The new red bar indicates a bullish-to-bearish shift in momentum. Similar patterns characterize the starts of long bear markets in 2021 and early 2018.
MACD
The moving average of the MACD histogram (MACD) histogram, which is used to measure the strength of the trend and trend in the trend, produces deeper bars under the zero line in the weekly chart. This is a sign of strengthening the downside momentum.
Both indicators flipped positively in November, after which prices emerged from $ 1 to above $ 3.
The 5- and 10-week simple moving averages (SMA) also crossed the bearish, suggesting the path of at least the resistance was on the downside.
Bollinger bands
Bollinger bands-the bands of volatility have put two common deviations above and below the 20-week SMA of the XRP-extension in response to the sharp price rally of late 2024 and early this year.
Historically, prices tend to move less following the sharp expansion of bollinger bands, such as observed after mid -2021 and early 2018.
When is Bullish?
A steady move of $ 3, the highly registered on March 2, will prove the bearish setup, ignoring the lower pattern of highs to suggest a modified bullish technical view.
Some analysts Expect to reach the XRP as high as $ 10 By the end of this decade.
