Crypto analyst Alessio Rastani recently raised concerns about XRP’s future price movements, suggesting that the cryptocurrency could be in trouble. He emphasized strong warnings on the chart, indicating the potential for further price declines in the near future. Rastani’s analysis, based on the Elliot Wave Theory, pointed towards a possible drop in XRP’s price to $0.13 or even lower as part of Wave C. This projection represents a significant decline of approximately 100% from Wave B and aligns with a corrective move similar to Wave A witnessed in 2020.
Rastani highlighted the corrective nature of XRP’s price action following its rally in 2020 when the cryptocurrency was deemed a non-security. He mentioned that the rally overlapped, indicating a corrective bounce that tends to have bearish implications and typically resolves to the downside. According to Rastani, XRP would need an impulsive rally to sustain its upward trajectory, suggesting that the ongoing corrective rally from 2022 could lead to further downside pressure.
The analyst pointed out crucial support levels for XRP at $0.41 and $0.35, underlining that a break below these levels could confirm a downward move towards $0.2 and $0.17. Rastani also suggested the possibility of XRP dropping to $0.13, indicating a potentially prolonged bearish trend that could extend until year-end or possibly into 2025. He cautioned that XRP must remain below resistance levels at $0.64 and $0.74 to validate his projections of further price decline.
Rastani drew attention to the momentum indicator on XRP’s chart, highlighting the significant downward negative momentum observed recently. He inferred that such momentum typically precedes a downward move, albeit noting that the trigger for the downward trend has not yet been activated. However, he expressed confidence that a breach below $0.35 could trigger the anticipated downward move in XRP’s price.
In a scenario where Rastani’s projections are invalidated, he presented an alternative outlook for XRP’s price action. He speculated that if XRP breaks above $0.64 and $0.74, it could signify a continuation of the rally from 2022 as Wave A, with the recent drop to $0.40 representing Wave B. This scenario could potentially set XRP up for a move towards $1.40 for Wave C or even retesting the 2021 highs around $2. Nevertheless, Rastani cautioned that even in this alternative scenario, the overall trend for XRP remains bearish.
Overall, Alessio Rastani’s analysis of XRP’s price trajectory presents a cautious outlook, suggesting the possibility of further downside pressure for the cryptocurrency. His emphasis on key support and resistance levels, as well as the corrective nature of recent price movements, underscores the current challenges facing XRP in maintaining its bullish momentum. Investors in XRP will need to closely monitor these critical levels and indicators to assess the potential implications for their investment decisions.
Leave a Reply