The cryptocurrency XRP has fallen below $3 again, and this decrease is linked to changes in the technical structure of the market rather than just the number itself.
Analysis of XRP's Decline
Since its breakout in July, XRP has closed below the midline of the Bollinger Bands on the daily chart for the first time, indicating a shift in the previously building momentum. This mid-band, around $3.19, had been supporting the market through dips until today.
Technical Signals and Support Level
When the price drops below the center of the bands, it no longer follows the trend but starts seeking support. In this case, support is currently near the lower band, hovering around $2.76, suggesting a potential 6.24% drop.
Future of XRP: Predictions and Trends
On the weekly chart, XRP is not in freefall, but its shape is gradually bending. The token is on track to close its second consecutive red candle, and while it remains above long-term support zones, Bollinger Bands suggest more drops could be ahead. The price is likely to test the weekly midline, currently around $2.39, indicating a further potential 20% drop.
Therefore, XRP is facing changes in its technical structure that could influence its future dynamics. Despite current trends, the cryptocurrency remains within a support area, and future movements will depend on its ability to hold these levels.
