Crypto: Xrp Analysts Explain Why Price Drop Below $1 ‘remains Possible’

XRP looked increasingly bearish at $1.40, with a key indicator suggesting that a downward move below $1 was possible in the coming weeks.

XRP (XRP)  has retraced nearly 63% from its multi-year high of $3.66 to trade at $1.36 on Wednesday, a technical setup that may have bearish implications for its price, according to a market analyst.

XRP appeared bearish below $1.40, with chart technicals pointing to a further drop toward $0.70-$1.

Persistent spot XRP ETFs inflows, whale accumulation and a surge in active addresses could invalidate the bearish outlook.

In a Tuesday post on X, Chart Nerd said that previous fractals from the monthly Gaussian Channel indicator suggest that XRP could drop lower over the coming weeks or months.

Related: XRP traders more optimistic as BTC, ETH mood turns sour: Santiment

The Gaussian Channel is a technical analysis indicator used to identify trends, spot potential support/resistance levels, and overbought/oversold conditions.

The chart below shows that whenever the XRP price rallied, it has corrected to retest the upper regression band of the Gaussian Channel, which is currently at $1.16.

Historically, this has led to three to four months of “further decline towards the middle regression band of the Gaussian Channel before marking a foundation and continuing the trajectory higher,” the analyst said, adding:

Chart Nerd added that this scenario will be validated if the XRP drops below the local lows of $1.12, reached on Friday.

Source: CoinTelegraph