Is XRP in Trouble? Analyst’s Insights
Analyst Alessio Rastani suggests that XRP may face challenges ahead based on his recent chart analysis. He points out key warnings on the chart signaling potential price declines for the cryptocurrency.
Wave C Analysis
- Rastani predicts XRP could plummet to $0.13 or even lower in Wave C of his analysis using the Elliot Wave Theory.
- This drop would represent a significant 100% decline from Wave B, similar to a corrective move to Wave A observed in 2020.
The altcoin experienced a bounce in 2020 when it was declared a non-security, which Rastani views as a bearish corrective rally due to its overlapping nature. Such corrective rallies typically result in downward trends.
Impulsive Rally Needed
- Rastani emphasizes the necessity of an impulsive rally for XRP to sustain its upward trajectory.
- He suggests that since the corrective rally from 2022 is ongoing, XRP could still drop further, pointing out critical support levels at $0.41 and $0.35.
- A breach below these levels could confirm a downward movement towards $0.2, $0.17, and potentially even $0.13.
Rastani anticipates this decline may take several months, projecting that XRP could reach these levels by year-end or in 2025. He warns that XRP must stay below resistance levels at $0.64 and $0.74; any break above would invalidate his analysis.
Momentum Indicator Analysis
- Rastani observes significant downward negative momentum for XRP on its chart, signaling a probable downward trend.
- While this downward momentum has yet to trigger, he anticipates it might occur if XRP falls below $0.35.
Alternative Price Movement
- Rastani outlines a potential alternative scenario for XRP if his projections are proven wrong, suggesting a positive outcome if XRP surpasses $0.64 and $0.74.
- He explains that such a move would indicate that the rally in 2022 was Wave A, setting XRP up for a possible surge to $1.40 for Wave C.
- While XRP could also retest highs around $2, Rastani notes this doesn’t negate the likelihood of a future downward trend.
Rastani reiterates the likelihood of XRP dropping to $0.13, emphasizing that the primary scenario remains bearish for the cryptocurrency.
Hot Take: Your Investment Strategy
As an investor, it is crucial to consider diverse opinions and analyses, such as Rastani’s insights on XRP. Evaluate your investment strategy based on informed decisions and a comprehensive understanding of market trends.
Sources:
Crypto analyst Alessio Rastani,
further price declines.
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