- XRP price has fallen by 24% compared to its high of 3.67, creating a bearish descending triangle.
- The support of 2.78 is decisive; any break below may initiate a decline to 2.40 or 1.90.
- ADX at 16.68 and a declining volume reflects low strength in the trend and there is a possibility of a break out or break down.
XRP Price Suffers 6% Daily Drop Amid Market Selloff
Peter Brandt, a seasoned trader, has expressed his concerns about the current price formation of XRP and he described the price chart as very negative. His discussion indicates that there is a downward triangle formation on the daily chart, a bearish technical formation that indicates increasing selling pressure. The support at $2.78 has so far withstood but low highs are pushing price action within a small range, meaning a decreased bullish drive.
XRP has just experienced a 6% intraday fall, reaching as low as $2.80 on Bitstamp. This involves a big pullback of 24% against its highest point of all time of $3.67 on July 18. A strong downward break beneath the $2.78 support may complete the triangle and indicate additional decline, where it may be headed to $2.40 and $1.90.
Cryptocurrencies broadly have been falling, with Bitcoin below $109,000 perceiving pressure on altcoins such as XRP price. Although the picture is bearish, the XRP/USDT chart also displays the presence of the symmetrical triangle that developed following the July rally. This might be an indication of a possible break out either way.
The 8-day and 18-day moving averages are narrowing, and the volume of trade has decreased, as is common during consolidation periods. The trend strength is weak as the ADX (14) is low at 16.68. An upward movement over $3.20-$3.30 would trigger the uptrend once again whereas a fall to below $2.78 would affirm the bearishness. These are the key levels that traders need to keep a close look at the next major move.
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