Trader Warns of Over 65% XRP Price Crash – Here’s Why

Trader Warns of Over 65% XRP Price Crash – Here's Why

Cryptocurrency trader Alan Santana has shared a bearish outlook for XRP on TradingView. His analysis suggests a potential continuation of the downtrend for the popular cryptocurrency.

Descending Channel and Bearish Signals

Santana's analysis reveals a descending channel formation for XRP, characterized by a series of lower highs and lower lows. The trader emphasizes the significance of recent bearish price action, with three consecutive bearish closes strengthening the downward momentum. A notable bearish signal emerged in the latest trading session, where the day started with a positive price movement but reversed course and closed red. This pattern, following two red days, confirms bearish sentiment and suggests seller dominance.

Key Support Levels and Potential Targets

Santana's chart identifies several Fibonacci retracement levels that may act as potential support areas for XRP. The 0.382 level at $0.5529 is currently serving as immediate support. Should this level fail to hold, the 0.618 level at $0.4871 becomes a crucial support within the descending channel. In a more bearish scenario, the 0.786 level at $0.4403 could provide stronger support if the price continues to decline. The analyst predicts a possible move towards the lower trendline of the channel, with a target around $0.3823. This target aligns with historical support and the channel's lower boundary.

Extended Bearish Scenario

Santana's analysis also considers the possibility of an extended bearish scenario. In this case, he outlines deeper support levels that could come into play. The 1.236 Fibonacci extension level at $0.3149 represents the first support in such a scenario. If bearish pressure intensifies further, the 1.382 extension at $0.2743 could be tested, indicating a more severe decline. In an extreme bearish case, Santana even considers the possibility of XRP reaching the 1.618 extension level at $0.2085, which could represent a move of approximately 65.44% from current levels.

Overall Market Conditions

Santana acknowledges that broader market conditions will influence XRP's price action. A strong market-wide crash could push prices below predicted levels. However, he remains optimistic about long-term prospects and expects renewed growth after the current bearish wave subsides.