XRP is in the fear zone, and sentiment on social media platforms is overwhelmingly bearish. However, the last time the comments were so bearish in this fear zone, XRP spiked drastically. But according to technical analysis, XRP is likely to crash further.
The crypto market just recovered from extreme fear, and the mentality of the investors is improving. More importantly, CoinMarketCap’s Fear and Greed Index indicator ended its downward trend and started a new uptrend.
While the overall market sentiment is improving, the comments about XRP are mostly bearish on social media platforms, according to Santiment, a social metric tool. But here’s the silver lining: despite the sentiment being bearish and XRP still in the fear zone, the future looks bullish.
The last time bearish comments flooded social media, while the market was in fear, the coin surged by more than 20% in just three days. Right now, the same setup is appearing on the charts, and the same question, will XRP spike again? arises.
According to technical analysis, a spike in XRP price is unlikely. This is because a symmetrical triangle is forming on the chart. Unlike other patterns – which have one direction of breakout or breakdown – a symmetrical pattern has the capability of doing both. However, that depends on how the prices behave during the initial stages of the formation of the triangle.
If the price crashes during the early stages of the triangle, then prices will fall when the pattern is fully formed. The chart below shows exactly the same pattern; hence, XRP is bound to further crash once it’s out of the pattern.
The symmetrical triangle pattern is still not complete. As such, the coin will rebound off both trendlines, hitting as high as $2.25 and falling to $2 before crashing.
The Moving Average Convergence and Divergence (MACD) line is falling and closing in on the MACD-SMA line below. Even the green bars on the histogram are getting smaller, signaling the waning bullish momentum.
