XRP, the fourth-largest cryptocurrency by market capitalization, has made significant strides in its recovery after a downturn on April 7. The price of XRP dropped to $1.64, a low not seen since December, closing below $2 for the first time in months. However, the coin managed to bounce back and reclaim the $2 mark. Despite this recovery, new technical signals suggest that XRP may be heading for a bearish correction, potentially dipping to $1.60.

The primary concern is the appearance of a rising wedge pattern on XRP’s price chart. A rising wedge is a bearish chart pattern that often signals a reversal after an uptrend. The pattern forms when the price creates higher highs and higher lows, but at a narrowing pace, causing the two trendlines to converge. This pattern typically indicates that bullish momentum is weakening. When the price falls below the lower trendline of the wedge, it often leads to a shift from upward to downward momentum. On Wednesday, XRP’s chart displayed the breakdown of this rising wedge, suggesting that the uptrend may be losing steam.

The rising wedge breakdown marks a shift in market sentiment, with bearish momentum taking control. Buyers, who were previously driving the price upwards, may be losing confidence, giving way to sellers who could push the price lower. In addition to the rising wedge pattern, another technical signal that supports the bearish outlook is XRP’s movement below the Ichimoku cloud. The Ichimoku cloud is a key indicator in technical analysis, showing the overall trend direction of an asset. When the price is above the cloud, it signals a bullish trend, but when it drops below, as seen in XRP’s hourly chart, it suggests a bearish trend. This shift below the Ichimoku cloud further strengthens the case for a potential decline in XRP’s price.

Based on these technical indicators, there’s a growing possibility that XRP may retest its support level at $1.60. Veteran investor and technical analyst Thomas Bulkowski, who has studied chart patterns extensively, suggests that the starting point of the wedge often marks the initial support level following a breakdown. According to this analysis, if the bearish momentum continues, XRP could dip back to $1.60. This drop would represent a further correction, following the initial downturn from the April 7 market decline.

At the time of writing, XRP is trading at approximately $2.07, reflecting a slight 0.60% dip in the past 24 hours. Over the past week, however, the coin has gained 3.81%. While this short-term positive movement is encouraging, the technical analysis hints at a potential retreat. In the context of a broader market downturn, XRP might struggle to maintain its current price level.

Despite these bearish signals, some experts remain optimistic about XRP’s long-term prospects. Crypto educator Davinci Jeremie, for example, has a highly bullish target for XRP, predicting that it could hit $24 this year. He believes that support from U.S. officials could trigger a massive rally for the coin. This price target would represent a 1,059% increase from its current value. However, Jeremie advises caution, labeling XRP as a “banker’s coin” and recommending that investors sell their holdings in favor of Bitcoin.

In conclusion, while XRP has demonstrated resilience and recovered from recent lows, its current chart patterns suggest that it may face a bearish phase in the near term. The breakdown of the rising wedge and the move below the Ichimoku cloud indicate the possibility of a dip to $1.60. However, with long-term predictions remaining positive, investors should closely monitor market conditions before making any significant moves.