Cryptocurrency Analyst Alessio Rastani warned that XRP is in “trouble” after his latest chart analysis. He outlined some “strong warnings” on the chart that showed the crypto token could experience further price declines.
Why XRP is in trouble
Rastani mentioned in video on his YouTube channel that XRP could drop to $0.13 or even lower as part of Wave C of his analysis using Elliot Wave TheoryHe noted that the drop to this price level represents a decline in XRP of approximately 100% compared to Wave B and a similar corrective move to Wave A that occurred in 2020.
The cryptocurrency analyst also alluded to the altcoin’s rebound in 2020, around the time the cryptocurrency token it was announced that it is not a security. He said the gains then overlapped, suggesting it was a corrective rebound. He noted that these corrective rallies are bearish because they usually lead to declines.
Rastani argued that impulsive growth is needed for XRP to continue its upward trend. Therefore, he believes that XRP may continue to decline as the 2022 corrective rally continues. The analyst also highlighted USD 0.41 and USD 0.35 as key support levels, stating that a break below these levels would be confirmation downward movement to $0.2 and $0.17. He added that XRP could fall as low as $0.13.
Meanwhile, Rastani predicts that this move could take several months, stating that the crypto token could fall to these levels by the end of the year or in 2025. He also said that the altcoin needs to stay below resistance levels at $0.64 and USD 0.74, as exceeding these levels would invalidate his forecasts.
Rastani also highlighted the momentum indicator on the XRP chart, noting that there has been a lot of “negative downward momentum” for XRP lately, suggesting a move to the downside is likely. He claimed that the downside momentum has not triggered yet, but he believes it will happen soon, especially if the altcoin falls below $0.35.
Alternative move for price
Rastani also outlined alternative movement what XRP could achieve if its predictions were invalidated, although he doubts that will happen. He argued 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, thus establishing XRP on move to about 1.40 for Wave C
The cryptocurrency analyst added that XRP could also retesting 2021 highs about USD 2. However, he argued that this would mean that the next move is still bearish, suggesting that the alternative move is not still bullish for XRP. He once again confirmed that the first scenario of XRP decline down to just $0.13 was probable.
Featured image created with Dall.E, chart from Tradingview.com
