Although Bitcoin remains up on the year, XRP hasn’t fared as well; the third-largest cryptocurrency, per data from CoinMarketCap, is down over 40% from its $0.34 high seen in the middle of February, posting a small loss since the year started.
Unfortunately, analysts across the board only expect XRP to trend lower in the coming days, citing a flurry of scary technical signs.
XRP Could Fall Lower, Analysts Warn
Magic, a controversial and active crypto analyst, recently shared an extensive XRP analysis published to TradingView, sharing that the asset may be on its way to test the $0.15 to $0.16 region in the coming days — around 25% than the current market price of $0.20.
He explained in the post that the cryptocurrency has “clearly broken down from a head and shoulders pattern,” all while the asset has ” failed miserably to recover above the 61.8% Fibonacci retracement level.”
This, he claims is a sign that the cryptocurrency could fall to $0.15 to $0.16, which is where there exists diagonal support, the bottom of a falling wedge that has constrained price action for years now.
Magic’s analysis is relevant as he has been extremely accurate in calling XRP’s price action over the past three months; at the start of December, he predicted that the cryptocurrency would bottom around $0.17 (it did just two weeks later), then rally some 100% to $0.34 by February (it did just as he expected).
His track record with analyzing XRP may add credence to his theory that the cryptocurrency is ready to retrace to $0.15 to $0.16.
Notably, while the analyst has a short-term target of $0.16 for XRP, he recently flipped long-term bearish on the cryptocurrency market, sharing in a number of scathing messages that he expects Bitcoin to strongly underperform due to the lack of adoption and the potential recession brewing, evidenced in the weakness in traditional assets like oil and stocks (S&P 500, Dow Jones, etc.)
All Eyes on Bitcoin (And Traditional Markets)
While Magic seems certain XRP will fall further, its price action is somewhat dependent on Bitcoin.
And fortunately, analysts are getting bullish on the cryptocurrency once again.
Per previous reports from Ethereum World News, prominent cryptocurrency trader Mayne wrote: “If you wanna catch the knife this is where you do it IMO.” This was echoed by TraderXO, who wrote that he “longed $7,700,” seemingly agreeing with Mayne’s assessment that the cryptocurrency could find some bid in the coming hours and days from the crucial price region around $7,700.
If you wanna catch the knife this is where you do it IMO. pic.twitter.com/b6GxBu4F95
— Mayne (@Tradermayne) March 9, 2020
Featured Image from Unsplash
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