XRP price technical breakdown boosts chances of a 40% drop by July
Ripple (XRP) price stares at potential losses in the coming weeks as it breaks out of a "descending triangle" pattern, with its bias skewed toward the downside.
To recap, XRP started forming the technical structure after reaching $1.98 in April 2021, its second-highest level to date. In doing so, the token trended lower inside a range defined by a falling resistance trendline and a horizontal support trendline.
On May 16, 2022, XRP broke below the triangle's support trendline, accompanying a decent increase in trading volumes.
The move confirmed the descending triangle as a bearish reversal indicator. Meanwhile, as a rule of technical analysis, XRP now risks extending its downside move by as much as the triangle's maximum height when measured from the breakdown point, as shown below.
This could have XRP drop to $0.18 by July 2022, down nearly 40% from June 1's price.
XRP's bearish setup appears amid a broader selloff taking place across the crypto market, with some tokens now trading more than 90% below their record highs established last year.
The massive tailspin began in May after Terra (LUNA) — now known as Luna Classic (LUNC) — a $40-billion "algorithmic stablecoin" project, collapsed due to the failure of its staking system. This debacle found its match in Celsius Network, one of the largest crypto lending platforms, which unexpectedly paused crypto withdrawals in June over "extreme market conditions."
Related: Finblox withdrawal restrictions trigger concerns from the community
Since then, the crypto market has been facing one piece of bad news after another, from crypto fund giant Three Arrow Capital's potential insolvency owing to bad debts and risky trades to crypto lender Babel Finance halting withdrawals due to
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