Is XRP price going to crash again?

XRP (XRP) price has recovered from its low of $1.76 reached on Feb. 3, but it’s still trading below a key resistance level. Will XRP’s price drop further in the coming days?

XRP price needs to reclaim the 50 SMA

Last week’s crash in XRP price saw it breach the 50-day simple moving average (SMA), which historically had acted as strong support since Nov. 10.

Related: XRP futures open interest drops 37% — Are altcoin traders jumping ship?

Why it matters:

• Historically, reclaiming this trendline has preceded major XRP price rallies.

• On Nov. 10, 2024, XRP rose above the 50-day SMA after trading below it for 30 days. This preceded a 520% rally in XRP price.

• Zooming out further, XRP rose above this moving average in July 2024 and August 2024, preceding 35% and 29% rallies, respectively.

• XRP price could see another similar rally if it reclaims this trendline.

“XRP eyes a breakout” as the price tests $2.40 support, said pseudonymous analyst  MackAttackXRP in their latest analysis on X, adding that a move above the 50-day SMA  “could signal a strong rally” on the upside.

“Long-term XRP outlook is that XRP trades between $1.20-$4.20.”

XRP bear flag hints at $1.70

XRP, nevertheless, remains in a bearish continuation pattern that indicates a potential correction ahead despite the ongoing consolidation.

Key points:

• XRP is trading within a bear flag pattern, indicating the possibility of continuing with the downward momentum if key support levels don’t hold.

• The bull flag developed after XRP’s rally from $3.13 to a local low of $1.76 between Jan. 31 and Feb. 3.

• The consolidation within the bear flag has XRP trading in an ascending parallel channel, with today’s recovery bounding off critical support levels, including the lower boundary of the flag at $2.34.

• A breakdown of this level could trigger another price crash.

• The bear flag’s downside target, derived from the height of the previous drop, is approximately $1.70, representing a 30% downtick from the current price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.