Therefore, the token is breaking through multiple support levels, which may prevent further decline.
Price
XRP
Since January 13, the stock has been consolidating for quite some time, setting four equal lows and five lower lows. Connecting these points with a trend line forms a descending triangle.
The technical pattern predicts a 13% decline to $0.345, which is derived by measuring the distance between the first swing low and the breakout point at $0.398.
XRP broke below the lower trend line at $0.375 on January 26, triggering a drop to $0.35 and forming a double bottom.
However, with Bitcoin lacking volatility, most altcoin markets also see lower returns. Therefore, the bears will maintain control and prevent bullish momentum from driving XRP prices higher.
If volatility returns in favor of the bears, an uptrend could lead to a massive collapse. This is why investors should be cautious and not fall into the wrong direction.
However, if the volatility fails to materialize, market participants can expect XRP prices to continue to fall, to retest at least the $0.371 support level. If the bearish pressure continues to increase, the asset could reach the target of $0.345.
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On the other hand, if the bulls show strength, XRP prices are likely to see a significant increase. In this case, altcoins will face resistance at the bottom of the descending triangle at $0.398, with the price moving at the time of writing.
If XRP prices manage to close above $0.455 on a four-hour candle, the bearish argument will be invalidated. This move will create a higher top, tilt the odds in favor of the bulls, and potentially trigger a rebound to $0.488.