XRP is heading towards a technical juncture on the monthly chart, and it could tip the bullish momentum. Historic data shows that every single time XRP crossed below the technical indicator, Trend Ribbon, the coin’s prices crashed by more than 50%. If history repeats, XRP will crash below $1.5. If not, XRP will test the $2.1 level.
Ripple’s XRP coin is currently trading at $1.86 after losing almost 2% of its price during the past week. During the week, the coin tested the resistance level at $1.95 a few times but was rejected. And now after crashing below its weekly opening market price of $1.9, the coin seems to have found its footing, as it makes higher highs, trying to emerge above the red zone.
On the daily chart, XRP is trading inside a bullish falling wedge, which will eventually break out to the upside. Inside a falling wedge, the seller keeps pushing the prices lower, but their strength weakens and the wedge starts to narrow down. As the pattern is nearing completion, the breakout could happen at any given time. Given that the breakout happens, the coin could reach above $2, which is also near the 50-day moving average.
However, when the monthly chart is considered, it paints a gloomy picture, where the XRP price is about to cross below the trend ribbon indicator. The Trend Ribbon is a multi-moving-average indicator that visualizes trend direction and strength by layering short-term and long-term averages into a single band.
History says that every single time XRP crossed below the Trend Ribbon, the prices started to crash. Not just a crash, but the whole trend became bearish. As XRP is currently at this pivotal juncture, anything is possible.
If XRP crosses below the indicator, its trend will change and prices will start to crash. However, if the coin manages to defend this level, the $2.1 price forecast on the daily chart would be a possible event, but if the bears pull XRP below the indicator, then the coin will crash by at least 50%.
