XRP price is at risk of a significant move to the downside after it dropped below a critical line of defense. If Ripple slides below $0.58, the bulls can expect further losses as the prevailing chart pattern puts a 70% decline on the radar.

XRP price has sliced below the lower boundary of the symmetrical triangle pattern on the 3-day chart, indicating that a 70% plunge toward $0.18 could be in the offing.

The last reliable line of defense before the anticipated plunge is at the support line given by the Momentum Reversal Indicator (MRI) at $0.58. If Ripple faces additional selling pressure, XRP price could drop toward the March 11 low at $0.42.

An additional foothold may emerge at the 127.2% Fibonacci extension level at $0.33, before XRP price slides further toward the January 28 low at $0.24. A catastrophic spike in sell orders may push Ripple lower toward the pessimistic target at $0.18.

However, if XRP price manages to reclaim the lower boundary of the governing technical pattern at $0.63 as support, the bearish outlook may be voided.

Ripple will face an additional hurdle at the 200 three-day Simple Moving Average (SMA) at $0.66, then at the 78.6% Fibonacci retracement level at $0.71.

XRP price could be confronted with another stiff obstacle at the 61.8% Fibonacci retracement level at $0.85, where the resistance level also sits.

If the bulls manage to reverse the period of underperformance and slice above the aforementioned headwinds, XRP price will aim to tag $0.98, where the 50 three-day SMA and the 100 three-day SMA intersect.

If XRP price surges above the upper boundary of the governing technical pattern, the bulls could target bigger aspirations at the November 9 high at $1.34.

Ripple Dependent Upon Support From 0.5800

Jan 29 2022