Crypto Analyst Alessio Rastani warned that XRP is in “trouble” following his recent chart analysis. He outlined certain “strong warnings” on the chart, which showed that the crypto token could suffer new price drops.
Why XRP is in trouble
Rastani mentioned in a video on his YouTube channel that XRP could fall to $0.13 or even lower as part of Wave C of his analysis using the Elliot Wave Theory. He noted that a drop to this price level represents a roughly 100% decline for XRP from Wave B and a similar corrective move to Wave A that occurred in 2020.
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The crypto analyst also alluded to the altcoin’s recovery in 2020, around the time the crypto token was declared a non-security. He stated that the rally then overlapped, which suggested it was a corrective bounce. He noted that these corrective highs are bearish in nature as they usually resolve on the downside.
Rastani stated that an impulsive recovery is necessary for XRP to continue its uptrend. This is why he believes XRP could still fall as the 2022 corrective rally is still in play. The analyst also highlighted the support levels at $0.41 and $0.35 as crucial, stating that a break below these levels will serve as confirmation for the downward movement to $0.2 and $0.17. He added that XRP could even drop to $0.13.
Meanwhile, Rastani predicts that this shift could take several months, stating that the crypto token could fall to these levels by the end of the year or sometime in 2025. He also said that the altcoin needs to stay below the level resistance levels at $0.64 and $0.74, as a break above these levels will invalidate their projections.
Rastani also highlighted the momentum indicator on the XRP chart, noting that there has been a lot of “downside negative momentum” for XRP recently, suggesting that a downward movement is likely to occur. He stated that downward momentum has not yet been triggered, but believes it will happen soon, especially if the altcoin breaks below $0.35.
An alternative movement for the price
Rastani also described a alternative movement what XRP could do if its projections were invalidated, although he doubts that will happen. He stated that if XRP manages to break above $0.64 and $0.74, it would mean that the 2022 rally was Wave A, and the recent drop to around $0.40 was Wave B, setting up so XRP for a change to around $1.40 for Wave C.
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The crypto analyst added that XRP could also retest 2021 highs However, he stated that this would mean that the next move would still be downwards, suggesting that the alternative move is not yet bullish for XRP. He once again reaffirmed that the first XRP crash scenario up to $0.13 it was likely to happen.
Featured image created with Dall.E, chart from Tradingview.com