Altcoins News

Story: Analyst warns XRP chart pattern looks “very dangerous” — but history shows potential upside…

By Sakamoto Nashi

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Weekly close below the SMA points to historical danger zones. According to Steph, XRP closing a weekly candle below its 50-week SMA has been one of the most…

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Why some analysts doubt a full repeat of past collapses. Despite the historical precedents, several factors may limit downside risk this time.

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A surprising silver lining appears on another bearish signal. Steph also pointed to a different trend — and unlike the SMA signal, this one offers potential…

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What traders are watching next. Analysts say the next few weeks will determine whether the 50-week SMA breakdown turns into…

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Bottom line. The market faces two conflicting narratives:

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XRP is once again under pressure as analysts spotlight a technical setup that has historically preceded steep declines.

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The warning arrives during a critical period for XRP. The cryptocurrency has shed more than 14% in the last week, trading at $2.14, and remains 41.3% below its yearly peak of $3.

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According to Steph, XRP closing a weekly candle below its 50-week SMA has been one of the most reliable bearish indicators for the asset.

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 June 2018 — 57.7% decline XRP closed below the 50-week SMA during its correction from the $3.31 high. Within ten weeks, price fell from $0.58 to $0.

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 January 2022 — 74% decline XRP formed another weekly close below the 50-week SMA at $0.85, and continued plunging to $0.28 by June 2022.

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Now, a third similar pattern has emerged. Two weeks ago, XRP closed the week at $2.36, below the 50-week SMA level of $2.54. Since then, it has already fallen another 9%.

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If history repeats even the less severe version of this trend, XRP could fall to $0.998 — roughly $1. If the harsher scenario plays out, XRP could decline toward $0.

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Despite the historical precedents, several factors may limit downside risk this time. Unlike previous SMA breakdowns, XRP currently benefits from:

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• growing institutional demand • emerging spot ETFs • increasing Ripple partnerships • regulatory clarity following key court rulings • treasury companies accumulating digital…

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These structural developments did not exist during the 2018 or 2022 crashes. For this reason, many analysts argue that while downside pressure remains, a full 74% correction may…

The Currency Analytics

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