XRP Price Faces Major Breakdown as Analyst Points to Weak Buyer Support

Amid the two-month consolidation, the XRP price showcased several failed attempts to breach the overhead resistance trendline of a symmetrical triangle pattern.

XRP price remained largely flat on Tuesday, with a minimal gain of 0.07% noted during the U.S. trading session. For over a week, the Ripple coin formed a series of neutral candles in the daily chart, indicating no clear initiation from buyers or sellers. However, this consolidation below a multi-year resistance hints at the pivotal moment for this asset for a major breakout or reversal.

Also read: SHIB Price Analysis: Meme Coin Struggles at Key Resistance, Ready for Pullback?

XRP Price Faces Major Breakdown as Analyst Points to Weak Buyer Support

Amid the two-month consolidation, the XRP price showcased several failed attempts to breach the overhead resistance trendline of a symmetrical triangle pattern. Since September 2021, this pattern’s two covering trendlines have acted as dynamic resistance and support to squeeze the XRP price spread into a narrow range.

Despite the recent pullback from the overhead trendline, the XRP price avoiding a significant correction highlights strong buyer confidence. The constant attack to breach overhead trendlines could weaken the resistance and offer a decisive breakout shortly.

Crypto analyst JACKIS shared a similar bullish outlook in a unique and intriguing manner with his 136.7K followers on X (formerly known as Twitter). In his tweet, he warned of an impending XRP price drop, stating “The breakdown will be violent. I highly recommend hedging yourself once this crypto coin $XRP crashes.”

He further added, “The trendline is super weak & the distribution is too long.”

However, upon closer inspection, the attached image reveals that JACKIS had posted an inverted XRP price chart. When flipped to its correct orientation, it suggests the opposite—a potential breakout from the long-term resistance trendline, signaling a possible rally toward the $1 mark.

The breakdown will be violent. I highly recommend hedging yourself once this crypto coin $XRP crashes

The trendline is super weak & the distribution is too long pic.twitter.com/YeKc6t1ms1

— JACKIS (@i_am_jackis) September 23, 2024

Whale Selling May Stalls $0.60 Breakout

According to Santiment data, the large wallet addresses containing 100 million to 1 billion XRP coins (yellow line) have notably declined over the past year. The whale distribution often coincides with major market tops or prolonged corrections in an asset.

Therefore, if the recent reversal breached the 200-day EMA slope at $0.55, the sellers could drive another bear cycle within a triangle pattern. A post-breakdown fall could plunge the asset 20% to retest the bottom support trendline at $0.4.

Moreover, the SEC’s potential appeal could prolong the legal battle and delay XRP price sustainability at higher levels.

Conclusion

Considering the long-extended consolidation in XRP price, the potential buyers should focus on being reactive rather than proactive. A decisive breakout above the triangle resistance is crucial to confirm the end of the accumulation phase. Without it, the sideways movement could persist, potentially leading to another reversal.

Frequently Asked Questions (FAQs)

1. Will XRP price breach $0.50 again?

XRP price could attempt to reclaim the $0.50 level once again if it manages to break out of the symmetrical triangle pattern to the upside. However, a breakout in either direction will be confirmed once XRP price closes a trading session (4-hour candle) outside the pattern.

2. What does the symmetrical triangle pattern indicate for XRP?

The symmetrical triangle pattern is a neutral chart formation that can indicate a breakout in either direction. In the case of XRP, a breakout to the upside would indicate a potential continuation of the uptrend, while a breakout to the downside could indicate a possible resumption of the downtrend.

3. What does crypto analyst JACKIS predict for XRP?

Crypto analyst JACKIS appears to have shared an inverted XRP price chart, which, when flipped to its correct orientation, suggests a potential breakout from the long-term resistance trendline, indicating a possible rally toward the $1 mark.

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