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 drops.
Why XRP is in trouble
Rastani mentioned in video on his YouTube channel that XRP could drop to $0.13 or even lower in Wave C of his analysis using Elliott Wave TheoryHe noted that the drop to this price level represents a decline in XRP of about 100% from 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 same time the cryptocurrency was deemed unsecuredHe argued that the rally then overlapped, suggesting that it was a corrective rally. He noted that these corrective rallies are bearish in nature because they usually end lower.
Rastani argued that an impulsive rally is necessary for XRP to continue its uptrend. Therefore, he believes that XRP may continue to fall as the corrective rally from 2022 continues. The analyst also highlighted key support levels at $0.41 and $0.35, stating that a breakout of these levels would be confirmation downward movement to $0.2 and $0.17. He added that XRP could even drop to $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 recently, suggesting that a move lower is likely. He claimed that a downward impulse has not yet been triggered, but he believes it will happen soon, especially if the altcoin breaks below $0.35.
Alternative move for price
Rastani also outlined alternative move XRP could reach if his 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 setting XRP at go down to around $1.40 for Wave C
The cryptocurrency analyst added that XRP could also retest 2021 highs around $2. However, he argued that this would mean the next move would still be bearish, suggesting that the alternative move is not yet bullish for XRP. He once again confirmed that the first scenario of XRP falling to just $0.13 probably happened.
Featured image created with Dall.E, chart from Tradingview.com
