Ripple’s XRP price is at risk of falling by more than 25% in the coming weeks due to bearish settings over the months and concerns surrounding excessive XRP supply.
XRP descending triangle
XRP has been integrated inside the downward triangular pattern since it reached its peak in April 2021 at the second highest level ever (nearly $ 1.98).
In doing so, the XRP / USD pair left a series of low highs on its high trendline, while finding a solid support level around $ 0.55, as shown in the chart below.
In the week ending March 13, the price of XRP will again test the upper trend line of the triangle as resistance, and the coin will be further pulled back to the support trend line of the pattern near $ 0.55, which could fall 25% to 30%. I warned that there is sex.
Negative prospects also take clues from other bearish catalysts that have emerged around the triangular resistance.
For example, XRP formed a bearish hammer on March 12. This is a single candlestick pattern with a small body and a long upward wick, suggesting low buying pressure around the coin’s weekly high of around $ 0.85.
In addition, as attached, after testing the 20-week exponential moving average or the confluence of resistances defined by the 20-week EMA (green wave) and the 50-week EMA (red wave), prices have fallen. rice field. The image below.
A further downside clue to XRP is after Ripple Labs has locked 800 million XRP to escrow as part of its programmed withdrawal schedule.
The blockchain payment company moved about 100 million XRP worth about $ 40 million to exchange the wallet on March 3. Meanwhile, we expect to keep the remaining 700 million XRP (equivalent to about $ 550 million) in our escrow account, at least 200 million XRP. flood Raise funds for Ripple’s operating costs and enter the market to distribute XRP to Ripple’s global customers.
Meanwhile, it kept the remaining 700 million XRP (equivalent to about $ 550 million) in an escrow account, raising expectations that at least 200 million XRP would enter the market. generation Ripple operating costs and funding to distribute XRP to Ripple’s global customers.
I understand that there are about 800 million people $ XRP Locked and ready for sale … someone needs to check for an increase in circulating supply to confirm this
— Shan (@tayshyan) March 12, 2022
Concerns about the sale were due to the early response of XRP prices to unexpected increases in supply. For example, XRP / USD fell by more than 50% to nearly $ 0.60 in four months, after net supply in circulation exceeded 40.46 billion to 47 billion in just two days. ..
Nevertheless, Ripple’s withdrawal of 800 million XRP has not yet been reflected in its net circulation supply.
Increased risk of making a profit
Another catalyst that suggests that XRP prices can fall 25-30% to reach the downward triangle target is the Santiment indicator, which tracks the impact on social media trends and market trends.
XRP prices rose more than 15% weekly on March 12, and Santiment could follow up on future sales potential, along with a significant surge in social media searches for hashtag #XRPNetwork. It suggests that.
“Historically, our social trends show that whenever the crowd makes #XRPNetwork a top topic, it is justified to benefit.”
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