XRP, the sixth-largest crypto asset by market capitalization, stunned the crypto community in the first quarter of the year, having surged by over 40% within 30 days to be among the top-performing crypto assets.
After suffering many bearish months due to the lingering Ripple-SEC case, XRP staged a remarkable rally in the 2023 Q1, reigniting investors’ hope to see the asset at $1. This rally triggered by the positive developments surrounding the XRP lawsuit summary judgment saw the asset break through the historic $0.58 resistance on March 29.
However, the bears dragged the price of XRP down from the $0.58 level. Coupled with the market-wide crypto correction that saw BTC retrace to the $27,200 level from $31K, the mid-term sentiment on XRP remains bearish.
Egrag, a top crypto analyst who predicted the 2023 rally in XRP price confirmed that the asset has entered a downtrend, basing his analysis on technical indicators including the Fibonacci Ratios, Stoch Relative Strength Index (Stoch-RSI) and the Relative Strength Index (RSI).
Per the analysis shared on Wednesday, Egrag also cited an analysis from LuxAlgo, a top trading platform, noting that XRP could drop to the $0.4 level as indicated by the Fibonacci indicator.
He wrote, “When the LuxAlgo signals a ‘Buy’ signal & not a Strong Green ‘Buy’ signal then the possibilities of cooling off might be there. Retesting the Fib 0.382 (0.40c) is still in the cards.”
He added that the weekly Stoch-RSI also shows that XRP could drop slightly and range between $0.48 and $0.46 for a while. According to him, the Stoch-RSI does not indicate a big dump. “However, the Weekly Stoch-RSI is showing bearishness but usually the Stoch-RSI is not indicative for a dump but on the contrary, it might indicate a ranging duration,” he said.
Given the uncertainty with the Stoch-RSI, the notable TA expert referenced the RSI indicator for a clearer prediction. Per the RSI, Egrag submitted that XRP might gather a bit of momentum to surpass the $0.6 level but later retrace to confirm the price level as support. He wrote, “The RSI is more indicative, we might have a little bit of momentum to push price above ‘Final Wake Up Line’ & then drop to retest it to confirm it as support.”
According to him, “this will be the best scenario”, adding that XRP below $1 is a life-changing opportunity and telling the XRP Army to stay steady and consider accumulating the asset at these prices below $1.
#XRP Time To Pulverize 'Final Wake UP Line' (FWUL):
When the @LuxAlgo signals a 'Buy' signal & not a Strong Green 'Buy' signal then the possibilities of cooling off might be there. Retesting the Fib 0.382
(0.40c) is still in the cards.However, the Weekly Stoch-RSI… pic.twitter.com/Re7sdbbYlS
— EGRAG CRYPTO (@egragcrypto) April 19, 2023
At the time of writing, XRP is changing hands at $0.4552, down by 1.78% and 11.88% in the last 24 hours and 7 days respectively.
