He XRP price appears to be on the verge of another collapse that could send it to new multi-month lows. This comes after failing to hold support at $2.5 and the subsequent decline that has put it on a rather bearish path. If this bearish trend continues, then it is more likely that
The bears have trapped the price of XRP
In an analysis, cryptanalyst Lingrid revealed that the price of XRP is now under a lot of bearish pressure. The first sign of this is that the altcoin price has continued to fall within a well-defined descending channel, and this comes after the price was rejected near the resistance trend line below $2.44.
A direct result of this is that the price of XRP is still experiencing lower highs and lower lows, indicating that sellers still have a lot of control over the price. Right now, the analyst explains that the XRP price is still stuck under bearish pressure because of this.
From here, now there is many things that could happen for the price. The first of them is that it continues to fall and eventually reaches $2.1. This would be where the next major support for the price would be and in this case the price would have to hold at $2.1 and bounce for there to be a recovery.
On the other hand, if the bulls want to invalidate the bearish thesis, then they would have to get the price above $2.5. If XRP price can overcome this major resistance with momentum, then there could be a turn in the tide for the digital asset.
Factors to take into account
Lingrid also highlights a number of factors that could send the price of XRP up for another run. The first of them has to do with the price of Bitcoin, which categorically controls the crypto market in general. If the price of Bitcoin were to move, then it could take the price of XRP with it and invalidate the bears.
Next on the list is for the price of XRP to break above $2.45. In this case, the The breakout would put it on the path to $2.8marking an increase of more than 10% from the breakout point. This also plays into the analysis that bulls hold support ahead of a drop to $2.1.
Last but not least is the fact that there would be some unexpected news in the market. This could have to do with regulatory issues or liquidity events that end up unbalancing short-term technical flows, while the market determines the next direction.
Featured image of Dall.E, chart from TradingView.com
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