XRP has entered a period of weakness after breaking down from the consolidation pattern it had maintained over recent months. The cryptocurrency fell by 4 percent in the last 24 hours and dec
XRP has entered a period of weakness after breaking down from the consolidation pattern it had maintained over recent months. The cryptocurrency fell by 4 percent in the last 24 hours and declined 14 percent for the past week, dipping to $1.14. Market data indicates mounting selling pressure, a spike in liquidations, and a trend of investors reducing their positions in the futures market.
The price slipped below the lower boundary of a multi-month symmetrical triangle that had formed since the end of February. The $1.35 support level, previously tested multiple times, failed to hold, giving sellers the upper hand in the near term. This technical breakdown marks a significant end to the prior sideways movement in the market.
CasiTrades, a well-known analyst, noted that market participants had been bracing for such a move for months given the established triangle formation.
According to the analyst, the long-anticipated move has now materialized, and the loss of a major support level could trigger a deeper pullback under current market conditions.
CasiTrades assessed the downtrend from the May 14 peak near $1.55 as a five-wave structure. The first wave brought the price down to $1.26 on May 28, followed by a brief rebound to $1.36 in the second wave on May 30. The analysis suggests that the third wave is currently underway, targeting the $0.92 zone, which corresponds to the 1.618 Fibonacci extension level.
Glossary: The Fibonacci extension level is a tool used in technical analysis to measure potential continuation points of price movements. The 1.618 ratio is a widely monitored threshold, especially useful in setting targets for strong trends.
The analyst predicts that this third wave could trigger an additional 19 percent drop from current levels. A brief recovery toward $1.20 may follow, but in this scenario, the final downside target emerges as $0.87.
This area aligns with a broader support zone observed on higher timeframes, suggesting that although temporary rebounds are possible, the technical outlook does not currently point to a sustainable uptrend.
Market data highlights significant losses among XRP derivatives investors during the recent downturn. Total liquidations reached $25.05 million over the past 24 hours, of which $24.24 million stemmed from long positions. This demonstrates that selling has accelerated on the leveraged side, forcing many investors to close their positions.
Meanwhile, open interest dropped by 9 percent, accompanied by further outflows from futures contracts. These indicators show falling confidence in the short-term price stability of XRP, with investors aiming to limit their exposure. Despite this negative trend, XRP continues to trade slightly above the $1.12 level recorded on February 6.
The post XRP drops 14 percent in a week as key support fails appeared first on COINTURK NEWS.
