- XRP price has plummeted, currently trading at $0.559 after a 7.9% drop in 24 hours.
- Peter Brandt warns of a potential catastrophic head and shoulders pattern on the XRP/BTC chart.
XRP, a crypto portrayed as the banking bridge currency, has seen its market value plunge significantly in recent days. So far, the asset has declined roughly 7.3% in the past week and 7.9% in the past 24 hours.
This negative price performance from XRP has now brought its price to trade at $0.559 at the time of writing—a notable plunge from the $0.64 price mark seen on the 31st of July.
This downturn in XRP’s valuation occurs amidst a background of regulatory uncertainty, with Ripple, the largest holder of XRP, entangled in ongoing litigation with the U.S. Securities and Exchange Commission (SEC).
Just recently, the regulator issued a $102.6 million fine to Ripple for the violation of laws guiding securities via the sale of XRP to institutions.
Technical outlook on XRP
Adding fuel to the fire, prominent trader Peter Brandt has issued a caution to the altcoin community, advising vigilance over a potential bearish pattern developing on the asset price chart against Bitcoin [BTC].
Brandt particularly identified what appeared to be a multi-year complex head and shoulders pattern, with XRP/BTC threatening to breach a crucial support level that has held since the pattern’s inception six years ago.
Should XRP/BTC fall below this level, Brandt warned of a possible free-fall to much lower valuations. He noted in the post on X (formerly Twitter),
“This chart pattern is a multi-year complex H&S. If this chart penetrates the lower support line then all X accounts with XRP initials attached will slowly disappear to never again be seen again.”
What do the fundamentals reveal?
Fundamentally, XRP’s trend has been quite complex.
Data from Santiment revealed that despite the current market woes, the altcoin demonstrated strong performance in July due to vibrant on-chain activity and significant transaction volumes among large investors.
This indicated a possible disconnect between short-term price actions and the underlying network activity, suggesting that XRP may still have a supportive community and potential for recovery.
Meanwhile, XRP’s Open Interest has seen a steep decline, dropping over 14.87% in one day to stand at $717.64 million.
Source: Coinglass
Read Ripple’s [XRP] Price Prediction 2024-25
Amid this, AMBCrypto’s recent report suggested that XRP’s conditions might be aligning for a rebound, similar to the meteoric rise witnessed in 2017.
Current market cycle mirrors the conditions before the previous surge, implying that an upswing could be on the horizon if market sentiments shift favorably.
