- XRP price could be on the edge of further losses as it reaches the make-or-break point.
- Slicing below $0.80 could spell trouble for the bulls, as Ripple could be vulnerable to a 38% plunge.
- In order to void the bearish outlook, XRP would need to reclaim $0.85 as support.
XRP price is on the brink of further collapse as Ripple is nearing a critical line of support. Slicing below the crucial line of defense could see the token falling 38%, reaching $0.49 if momentum fails to shift toward the upside.
XRP price on edge of further decline
XRP price has formed a parallel channel pattern on the daily chart as the token continued to consolidate. Ripple is nearing the lower boundary of the governing technical pattern at $0.80 which acts as crucial support. If the token slices below the aforementioned line of defense, it could face a massive decline.
The prevailing chart pattern suggests a 38% nosedive from the downside trend line, projecting a bearish target of $0.49.
XRP price will discover multiple areas of support before the bears attempt to drive prices down toward the pessimistic target. Ripple will find its second line of defense at the August 9 low at $0.76. Additional foothold will appear at the July 12 high at $0.65, then at the multi-month ascending support trend line at $0.60.
An increase in selling pressure could push XRP price down toward the June 25 low at $0.58, then toward the 78.6% Fibonacci retracement level at $0.55 before Ripple reaches the parallel channel’s projected bearish target.
XRP/USDT daily chart
However, if XRP price manages to sustain above the lower boundary of the governing technical pattern at $0.80, Ripple may be able to void the bearish forecast by reclaiming higher levels, starting with the 61.8% Fibonacci retracement level at $0.85.
If a spike in buy orders occurs, XRP price may target the 21-day Simple Moving Average (SMA) at $0.93, then at the 200-day SMA at $0.95.
Bigger aspirations will target the middle boundary of the parallel channel at $1.02, then at the 50% retracement level at $1.06, which intersects with the 50-day and 100-day SMA.
