XRP News Today: XRP Faces 79.5% Drop Risk as Key Indicators Converge

Ripple’s XRP is at a critical juncture, with a well-known cryptocurrency analyst highlighting key technical indicators that could determine its future price trajectory. The analyst, known by the pseudonym Egrag Crypto, has identified the relationship between the 21 exponential moving average (EMA) and the 33 simple moving average (SMA) as pivotal. According to the analyst, a bearish cross between these two averages on the weekly chart could signal a major trend shift, potentially leading to a significant price drop.

The analyst pointed out historical instances where similar bearish crosses occurred. In May 2018 and November 2021, such crosses were observed, followed by substantial price declines of 87% and 72%, respectively. Based on these historical trends, the analyst predicts that the next major drop could see XRP plummet by 79.5% from the bearish cross point.

However, the analyst also noted bullish possibilities. The technical chart of XRP displays patterns that could trigger another price rally, potentially pushing the cryptocurrency beyond its all-time high of $3.84 to an unprecedented price of $27. The analyst believes that these bullish signals could lead to a significant price surge, similar to the 1600% move observed in the past, propelling XRP to around $27 from its current level.

Despite a 5% decline in price value over the last week, XRP has managed to maintain momentum above $2. At the time of reporting, XRP was trading at $2.34, with hourly gains showing a slight upward trend. The future of XRP hinges on the interplay between these technical indicators, with the potential for both a dramatic rise to $27 or a substantial crash of 79.5% depending on the direction of the 21 EMA and 33 SMA cross.