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The correction sentiment in the cryptocurrency market continues to strengthen as Bitcoin teases the breakdown below critical weekly support of $92,000. The mounting selling pressure bolsters XRP price to lose $2 support as the key triangle pattern and Bollinger band squeeze hints imminent breakdown.
As of now, the XRP price trades at $2.09 with an intraday gain of 0.03%. According to Coingecko, the asset’s market cap is at $120 Billion, while the 24-hour trading volume is at $6.9 Billion.
Key Highlights:
- A triangle pattern consolidation drives the current uncertainty sentiment in the XRP price.
- A neutral Doji candle at $2.08 support signals a renewed bullish momentum at triangle support.
- The Fibonacci retracement tool indicates $2 and $1.7 as key pullback support at their confidence with 38.2% and 50% FIB levels.
XRP Price Faces Major Breakdown Amid Bollinger Band Squeeze
In a recent tweet, renowned crypto analyst Ali Martinez highlighted a significant development on the XRP daily chart. According to his analysis, the Bollinger Bands indicator has entered a phase of contraction, commonly referred to as a “squeeze.” This technical setup often signals a period of reduced price volatility, which is typically followed by a major price movement.
Supporting this thesis, the XRP price action has shown a consolidation between two converging trendlines, indicating the formation of a triangle pattern. Theoretically, the temporary sideways movement should support the prevailing market trend to recuperate bullish momentum for the next leap.
Currently, the XRP price is 2.3% away from a breakdown below the triangle support. The potential drop will accelerate the selling pressure to drive a fall to $1, recording a 50% drop.
XRP Consolidation Holds Strong at Key Fibonacci Level
The XRP’s daily time frame chart shows the current price correction held above 0.382 FIB. Generally, an uptrend market pullback holding the key FIB levels indicates the buyers remain dominant players in the market.
Thus, if the broader market trend recuperates the exhausted bullish momentum, the XRP price could breach the triangle pattern on the upside, invalidating the bearish thesis. The post-breakout rally coil drives the asset to $4.5 high.
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