- XRP price has breached below a descending triangle pattern, triggering a 13% descent.
- Technicals indicate a retest of the $0.345 level seems likely despite the bulls’ struggle.
- If Ripple produces a higher high above $0.455, it will invalidate the bearish outlook.
XRP price has breached its consolidation phase but not with massive volatility. As a result, the remittance token is hovering above multiple support levels that might hinder a further move south.
XRP price faces a decisive moment
XRP price has been consolidating for quite some time, setting up four equal lows and five lower lows since May 13. Connecting these swing points using trend lines result in a descending triangle.
This technical formation forecasts a 13% downswing to $0.345, obtained by measuring the distance between the first swing high and swing low to the breakout point at $0.398.
Ripple breached the lower trend line on May 26, trigger a bearish move to 0.375, where it produced an equal low.
However, due to the lack of volatility in Bitcoin, most of the altcoin market has also seen tiny returns. Therefore, bears need to stay in control and prevent bullish momentum from taking over the XRP price.
If the resurgence of volatility takes place favoring the bears, the coiling up will result in a massive crash. Therefore, investors need to exercise caution and prevent getting caught up in the wrong direction.
However, if the volatility fails to manifest, market participants can expect XRP price to continue its descent to retest at least the $0.371 support level. If the bearish pressure continues to build, Ripple could hit its target at $0.345.
XRP/USDT 4-hour chart
On the other hand, if volatility makes a comeback favoring the bulls, there is a good chance XRP price could trigger a reversal rally. In such a case, Ripple will face a hurdle around the descending triangle’s base at $0.398.
The bearish thesis will face invalidation if XRP price produces a four-hour candlestick close above $0.455. This move would create a higher high and skew the odds in the bulls’ favor and potentially trigger a run-up to $0.488.