XRP Gears up to Retest $1.30. Here’s How it Will Go

XRP is experiencing the worst week of the month. After two weeks of consistent increases, prices are crashing at the time of writing.

It is in a two-day decline that started on Monday, with a 2% drop. However, it goes deeper than that; it finally flipped $1.40, a critical support level it has held for nearly a week.

The breakdown is unsurprising as one analysis predicted an impending slip below this key. While talking about the growing bearish sentiment, the write-up noted XRP was seeing significant exchange inflow after days of massive outflow. It added that the trend may culminate in further declines for the asset.

Inflows have increased, according to CryptoQuant data. On Monday, investors moved over 3.97 million into these trading platforms. Although they also moved more units out, exchange reserves rose.

Since losing the support, it has declined further, shedding another 2% on Tuesday. However, the latest dip is surprising as the market saw positive statements regarding the conflict in the Middle East. The US president announced on Tuesday what appears to be an indication that peace talks will resume.

Nonetheless, shortly after, the United Arab Emirates made its plans to leave OPEC public. As a result, oil soared. With the crypto market negatively correlated with Brent Crude, the hike translated into a further decline. Traders lost over $2 million in the derivative market in the last four hours.

What’s Next for XRP?

The earlier-mentioned analysis noted that trading above $1.40 was vital for the altcoin, as it pushed prices out of the CB cluster between support and $1.38. It warned that a drop to $1.30 may follow the slip.

Indicators on the 1-day chart now align with this prediction, with one hinting at a deeper low. XRP dropped below bollinger’s middle band after days of trending above it. The fall below this metric signals that the next step is another significant dip to the lower band.

The moving average convergence divergence recently had a bearish crossover, increasing the likelihood of further decline. However, there’s more. The last time the indicator showed such a crossover, the altcoin shed over 10% before recovering.

The 10% drop is not a one-time as it shed even larger figures in previous such intersections. If the trend holds this time, prices will break the $1.30 target. A 10% drop from Tuesday’s low will see the asset retrace to $1.23 before rebounding.

Additionally, prior price action suggests an increased likelihood that the critical support level will flip. In recent times, XRP has tested the $1.27 support extensively. The same may happen this time; a flip will trigger events as described by MACD.

Adding to the growing list of bearish developments is a positive funding rate across the derivatives. If longs continue to pile in and fundamentals fail to turn positive, the asset may experience another long squeeze.

Away from XRP, the global cryptocurrency market cap is bleeding. It dropped almost 2% in the last 24 hours. Some of the top losers include MemeCore and Chiliz, which lost 10% and 7%, respectively.

Tuesday was the most bearish day for CHZ, as it dropped below its seven-day low after several days of consistent gains.

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