The price of XRP is now below $0.50. Investors are asking when to become concerned.
XRP price drop – what is & isn’t moving price
There is a lot of confusion about what is and what isn’t moving the price of XRP.
If anything, the price of XRP tracks momentum in crypto markets, first and foremost BTC.
XRP does well when bullish momentum picks up, while it does not perform well when bearish momentum picks up.
So, while we love the following news, shown below, it’s not an XRP price mover. The XRP price drop will not end because of this type of news, no matter how supportive it may be for the long term fundamentals of XRP.
JUST IN: 🇺🇸 21Shares officially files for a spot $XRP ETF! pic.twitter.com/x1Kx4vI81h
— Good Morning Crypto (@AbsGMCrypto) November 1, 2024
XRP price drop – the importance of $0.50
XRP is dropping, today, November 3d, because bearish momentum is picking up in crypto markets.
An XRP price drop below $0.50 is important because of two reasons:
- According to our XRP price forecast research, the expected support area to be hit in 2024 is $0.44 – $0.49. In a way, a drop to right below $0.50 is expected.
- The $0.50 level marks an important point on the long term chart pattern of XRP, as seen below.
What matters, however, is that XRP does not drop below $0.44 for more than 3 days.
Once XRP falls below $0.50, and stays there for more than 8 consecutive days, it will get concerning.
XRP price chart – the bullish triangle
The XRP price drop should be looked at in conjunction with the XRP price chart, preferably the long term chart pattern.
This puts the potentially short term XRP price drop in perspective.
What can be derived from the long term XRP chart pattern is a long term bullish triangle that is being tested.
XRP at $0.50 represents a critical price point, as it marks support of the long term triangle which is bullish (until proven otherwise).
Moreover, and this is important, the XRP price may drop below $0.50 for 3 consecutive weeks but the weekly candle should close at or above $0.50 on week 3. That’s how we derive November 24th, 2024, as a cut off moment for the XRP price drop to recover.
This chart, combined with the ‘3 week invalidation rule’, puts the ongoing test of $0.50 in perspective.
Reality vs. hope
One thing we have to point out – no matter how bullish the XRP chart structure looks it has to improve in order to resolve higher.
Below is a post that suggests an upward resolution, no matter what. While we are in the camp that XRP is very bullish, we also need to see an improvement for the bullish pattern to be proven bullish.
We’re all set and ready to go! $XRP 🚀 pic.twitter.com/EIhsV9WIjM
— Levi | Crypto Crusaders (@LeviRietveld) November 3, 2024
XRP price drop – conclusion
An XRP price drop to the $0.44 – $0.49 was to be expected. In fact, we predicted it.
We conclude that XRP has some buffer to digest a drop.
The XRP drop below $0.50 can last for max 3 weeks, but not later than November 24th, 2024, it needs to be invalidated in order to avoid a concerning setup.
