- XRP Price falling wedge pattern signals a potential 24% surge, keeping the $4 target alive despite market uncertainties.
- MVRV death cross warns of potential declines as short-term holders face losses, raising risk for further selling pressure.
- XRP price $3 support is crucial for bullish momentum; failure to break $3.22 could lead to bearish dominance and price decline.
XRP price is facing a critical crossroads as the price surges to $3.01, but an MVRV death cross has emerged, raising concerns among traders. Despite this, a bullish pattern continues to suggest that the $4 target remains within reach. XRP Price Bullish Wedge Pattern Keeps $4 Target Alive
XPR Price Bullish Wedge Pattern Keeps $4 Target Alive
The current analysis on XRP price suggests that the cryptocurrency could still reach $4 despite some market headwinds. A key factor supporting this outlook is the falling wedge pattern, which shows a weakening downtrend.
The falling wedge typically signals that the downward movement is losing momentum, and in XRP’s case, it implies that a price reversal could be on the horizon. This pattern’s height indicates that XRP could see a 24% surge, potentially pushing it towards the $4 target if buyers step in at the right moment.
However, XRP Price support at $3 is crucial for its upward trajectory. While bulls are trying to maintain this price level, their control is not entirely secure, especially considering that the broader market is not experiencing consistent growth.
If XRP price cannot break above the 78.6% Fibonacci level of $3.22, the bears could gain the upper hand, leading to a potential decline in price.
Source: TradingView
Despite the challenges, the ADX line offers some hope for bullish sentiment. A declining ADX suggests that the falling wedge’s downward pressure is weakening, which may prevent the anticipated market crash.
This supports the possibility that XRP price could still reach $4 if the market stabilizes and buying activity picks up.
MVRV Death Cross Raises Concerns for XRP Price
XRP recent price movement is tied to the potential for rate cuts in September, but analyst Ali Martinez highlights significant concerns. A “death cross” has emerged in the Market Value to Realized Value (MVRV) ratio, where the 50-day Simple Moving Average (SMA) crossed below the 200-day SMA.
This pattern signals that short-term holders are sitting on losses, which raises the risk of further selling, potentially leading to more downward pressure on XRP price.
Martinez points out that this death cross has had a history of causing price declines. In mid-May, the crossover led XRP Price to drop from $2.65 to $1.90 in under six weeks. Despite the current rally, these past trends suggest that the token is not out of danger.
The increased movement of coins to exchanges further raises concerns, as traders may be preparing to sell.
Source: Ali Charts
Data from Coinglass shows significant net inflows into exchanges over the past few days, totaling $44 million in XRP. With these coins now accessible for sale, there’s an increased risk of further downward momentum in XRP price, especially if short-term holders decide to offload.
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