XRP Price Prediction: Why the XRP Coin May Plunge to $0.4
- PHPzOriginal
- 2024-08-06 00:34:121132browse
The XRP price fell 15.4% on Monday, along with the rest of the crypto market. The leading digital assets, Bitcoin and Ethereum, are down 14-16%
XRP price crashed 15.4% on Monday, following a broader market sell-off. As Japan’s stock index fell 12% amid the Bank of Japan (BOJ) raising interest rates to contain inflation, the leading digital assets, Bitcoin and Ethereum, are down 14-16% to currently trade at $51000 and $2243, respectively. But as fear of recession escalates, here are key technical reasons why the XRP coin may plunge to $0.4.
Forced Liquidations and Bearish Funding Rate Exacerbate Sell-Off
XRP price has been on a six-day downward spiral, plummeting from $0.627 to $0.448—a 28.8% decrease. During this period, long position holders faced nearly $30 million in forced liquidations, according to Coinglass data. These liquidations have increased sell orders in the market, intensifying the supply pressure.
Moreover, derivative market data for XRP shows an Open Interest (OI)-Weighted Funding Rate of -0.0064. This negative rate suggests that short sellers incur costs to hold their positions, reinforcing a solid bearish outlook and the anticipation of further price drops.
EMA Death Cross Imminent on Daily Chart
Amid the ongoing correction, the XRP daily chart shows the 50-day Exponential Moving Average is poised to break below the 200-day EMA. This death crossover signals a major sell signal that could accelerate the current bearish momentum.
Though the flattish 100-and-200-day EMAs signal a sideways trend, the coin price trading below them projects the sellers to have the upper hand.
Triangle Pattern Brings Major Support For XRP Price
The weekly chart reveals that XRP has undergone another bearish reversal within the symmetrical triangle pattern. This chart setup consists of two converging trendlines leading a sideways trend since September 2021. In theory, the ongoing consolidation should serve as a foundation for the prevailing market trend to gather momentum for a significant move.
The above is the detailed content of XRP Price Prediction: Why the XRP Coin May Plunge to $0.4. For more information, please follow other related articles on the PHP Chinese website!