According to other tendencies in the cryptocurrency market, the double-digit percentage increases for XRP (XRP) this month may have peaked.
This comes after the elation of Ripple’s partial victory over the U.S. Securities and Exchange Commission, which led to bullish calls for as high as $15 in the upcoming months.
However, a fractal study of the most recent candlestick and price momentum patterns for XRP suggests that a significant market correction is still possible, especially if the past is any indication.
A fractal in XRP price was seen before a 65% drop
Notably, specific market signs for XRP appeared before a 65% price drop in Q2 2021.
Since January 2018, the upward movement of XRP has been constrained by the descending trendline barrier (designated as “upper trendline resistance” in the chart above). Another horizontal trendline (purple) near $0.93 supports this price ceiling.
Overall, the resistance confluence and an overbought RSI have increased the likelihood of a market downturn for XRP. In this scenario, the XRP price would drop over 40% from present levels by September, likely reaching the lower trendline support near $0.52.
A bounce around this level is more likely because the downside goal for XRP appears to be closer to its 50-week exponential moving average (50-week EMA; the red wave). Moreover, during the price decrease in Q2 2021, the wave support served as the local bottom level.
As of July 20, the price of XRP has increased by 70% month-to-date, outpacing the whole cryptocurrency market, which had a 5% increase during the same time.
