XRP News Today: XRP Faces 26% Crash Risk as Bear Flag Pattern Emerges

XRP, the cryptocurrency associated with Ripple, is currently experiencing significant bearish pressure, with analysts targeting a potential drop to $1.60. This bearish outlook is supported by several technical indicators and on-chain metrics. The 90-day Market Value to Realized Value (MVRV) ratio has surged to 31%, indicating that traders who purchased XRP in the last 30 days are sitting on profits of 31%. This overheated zone has historically preceded corrections, suggesting that profit-taking activity may increase, leading to a bearish reversal.
The daily timeframe chart for XRP shows a bearish breakdown from a bear flag pattern. This pattern suggests that the price could plunge to $1.60, with a potential 26% crash based on the flagpole’s height. The breakdown also signals that the downtrend, which commenced in mid-May, could continue. The Directional Movement Index (DMI) amplifies this bearish outlook, as the -DI oscillates above the +DI, indicating that downward price movements are stronger than upward movements.
However, the Money Flow Index (MFI) is rising and stands at 56, suggesting that the bear flag breakdown could be a bear trap. This means that XRP price could reclaim the lower trendline as support, potentially leading to a bullish reversal. One of the bullish catalysts that could aid this reversal includes the growth of Ripple’s RLUSD stablecoin ahead of the GENIUS Act vote.
Despite the bearish signals, XRP price is up by a modest 1% today, June 14, as the volatility that rocked crypto prices on Friday due to geopolitical tensions waned. At press time, XRP trades at $2.16, signaling high market interest. However, the appearance of a bear flag pattern on the daily timeframe suggests that the price could plunge to $1.60, while a key on-chain metric hints towards the formation of a local top.
In summary, the downside risk towards XRP price has increased as it confirms a bearish breakdown from a bear flag pattern. If a 26% crash ensues as depicted by the flagpole’s height, Ripple could plunge to $1.63. The MVRV ratio, currently at an overheated zone, also supports the likelihood of a bearish reversal as traders become more likely to take profits. However, the rising
suggests that this bearish breakdown could be a bear trap, and a bullish reversal is possible.
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