$XRP Price Crash Alert: Analyst Predicts 40% Drop Following Gravestone Doji Formation
The recent rally in XRP price could come to a sudden halt as a crypto analyst warns of a potential 40% crash. Despite breaking through the $1 mark, XRP’s price action now exhibits a Gravestone Doji candlestick pattern, signaling bearish momentum and a possible trend reversal.
A TradingView analyst, “Without Worries,” has outlined a detailed projection, suggesting XRP could drop from its current $1.11 to $0.66, marking a significant 40% decline. The Gravestone Doji pattern, commonly appearing at market tops, reflects sellers overpowering buyers, often leading to price corrections.
The analyst also highlights key indicators reinforcing the bearish outlook. XRP’s Relative Strength Index (RSI) shows a support breakout, pointing to an overbought market and hinting at a reversal. The Money Flow Index (MFI), which combines price and volume, suggests funds are leaving XRP, further weakening buying pressure.
Another factor is XRP’s price trading outside the Bollinger bands, a measure of price volatility. Historically, 95% of price movements occur within these bands, and when prices break out, they typically revert to the mean level, currently at $0.73. Narrowing Bollinger bands suggest buyer exhaustion, increasing the likelihood of a price drop.
The analyst also notes that most traders remain bullish or long on XRP, which is a contrarian signal, typically indicating an impending price correction. While acknowledging a slim chance for XRP’s upward trend to continue, the current indicators suggest a higher probability of a downward move.
In summary, XRP faces a critical test as bearish patterns dominate the chart. Investors should stay cautious, monitor key levels, and prepare for potential volatility as the market navigates these bearish signals.
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