Crypto analyst Tony Severino has revealed a rare chart formation, which presents a bearish outlook for the XRP price. This comes amid a market downtrend, with concerns that XRP may have topped in this market cycle.
Rare Chart Pattern That Sparked 87% XRP Price Crash Resurfaces
In an X post, Severino revealed that the XRP monthly LMACD has crossed bearish for the third time ever. He noted that the past two bearish crossovers resulted in an 87% and 71% drawdown after the signal fired. The analyst added that this signal, this time around, is still unconfirmed. As such, he remarked that bulls must push the XRP price much higher this month or they risk seeing the signal being confirmed.
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Severino’s analysis comes amid a crypto market downtrend, which has pushed the XRP price lower. The altcoin is now at risk of dropping below the psychological $2 level, a level that it fell below during the $19 billion liquidation event in October. Notably, crypto analyst CasiTrades had earlier predicted that XRP could still drop to as low as $1.4 before it bottoms.
The analyst is confident that such a crash for the XRP price is the perfect buy-the-dip opportunity as she expects the altcoin to still rally to a new all-time high (ATH), potentially reaching as high as $10. From a fundamentals perspective, there are also positives for XRP, which could spark a significant rebound.
Canary Capital’s spot XRP ETF is on course to launch on November 13, while Grayscale and Bitwise have also amended their filings, meaning they could launch soon. Ripple also just launched a crypto prime brokerage in the U.S. to offer OTC trading for XRP, RLUSD, and other crypto assets.
A Breakout For XRP On The Horizon
Crypto analyst Ether has indicated that the XRP price is primed to break above the resistance level at $3.1 soon enough. He stated that the current resistance is bound to break with the altcoin’s price accumulating over the major support at $1.9. The analyst explained that each test weakens the sellers’ defense while supply gets absorbed, liquidity thins out, and the market builds pressure.
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Furthermore, Ether noted that steady accumulation above strong support shows that the buyers are quietly taking control and that energy is being stored for an explosive move. In line with this, he declared that the XRP price breakout is no longer a question of if but when. In the meantime, CasiTrades stated that XRP is eyeing the $2.04 and $1.72 supports as part of the final wave to the downside.
At the time of writing, the XRP price is trading at around $2.2, down over 6% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Freepik, chart from Tradingview.com
