Over the weekend, the XRP price crashed further and ultimately declined below the $3 support level. This has put it on the path for possible losses as the current downtrend could continue to deepen. At the same time, there have also been a number of bearish formations that have emerged for the altcoin during this time. As the bearish formations pile up and sell-offs continue to be the order of the day, analysts have warned that the XRP price could be poised to crash further.
XRP Price Could Drop To The Bottom Of The Channel
According to crypto analyst CobraVanguard, there is the possibility that the XRP price could see a rapid decline to the bottom of the current channel. This comes as the altcoin is at risk of declining into the PRZ range, outlined by the chart shared by the crypto analyst on the TradingView website.
This PRZ range lies at the $2.8 level, meaning that the altcoin is dangerously close to actually falling below this point. At this level, there is the possibility that two things could happen. The first being that the bulls are able to maintain the momentum at this point and then trigger a bounce. In which case, the bearish thesis could be invalidated and the XRP price could begin the next wave of the uptrend.
However, there is a high probability that the XRP price will fall below this PRZ range, opening a path for bears to take control. This would mean a complete destruction of the support at $2.8, leading the cryptocurrency to fall to the bottom of the channel and putting it as low as $0.26 before the downtrend is over.
Descending Triangle Supports The Bears
Another crypto analyst who goes by KooksooTrade on the TradingView website has also lent their voice and warned that XRP could be facing a possible decline. The analyst points out the formation of a bearish descending triangle, whose possible break could trigger the next wave of losses.
As they explain, the XRP price has already broken down the neckline, and that is why the price has continued to decline. Following this trend, the crypto analyst explains that the bottom is not in and expects the altcoin to drawdown further to the $2.45-$2.5 range before the descent is over.
Analyst SwallowAcademy corroborates this formation in a response to the analysis, confirming that it is indeed a classic bearish pattern. Pointing to the neckline breakdown, they explain that this is indeed a strong signal suggesting that there could be more decline. However, unlike KooksooTrade, SwallowAcademy does expect the price to fall below the $2.45-$2.5 range before there is a bounce.
Featured image from Dall.E, chart from TradingView.com
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