Analyst Predicts Possible 40% Crash For XRP Price With Gravestone DOJI Candle Formation

The cryptocurrency market is abuzz with discussions about a possible downturn in XRP’s price. This comes after a crypto analyst presented a grim prediction, suggesting a potential 40% crash for the digital asset. This forecast arrives despite XRP recently achieving a bullish breakthrough, reaching the coveted $1 mark. The anticipation of a rally seems to be overshadowed by signals of a bearish pattern known as the Gravestone DOJI candlestick formation.

A crypto analyst, known as ‘Without Worries’ on TradingView, has meticulously dissected the XRP price movements, projecting a significant drop in the near future. The analysis suggests that XRP might experience a sharp 40% decline, potentially occurring within mere days. This anticipated downturn implies a notable reversal from the recent highs XRP has enjoyed.

According to insights from the TradingView expert, XRP recently surged by an impressive 150% over a span of just 10 days, marking its first climb to the $1 milestone in three years. However, despite this bullish surge, the analyst cites several technical indicators pointing towards an impending trend reversal and price correction for XRP.

The Gravestone DOJI, a bearish candlestick pattern that typically signals market tops, has been identified on the XRP price chart. This formation suggests that while buyers attempted to push XRP’s price higher, they were ultimately overpowered by sellers eager to capitalize on profits. This pattern is a clear indication of a potential price correction looming on the horizon.

Beyond the Gravestone DOJI, further signals of an impending correction come from the Relative Strength Index (RSI) and Money Flow Index (MFI). The RSI, which gauges the velocity and change of price movements, indicates whether an asset is overbought or oversold. Meanwhile, the MFI, which considers both price and volume, tracks the flow of money within the asset.

A support breakout in XRP’s RSI indicates a possible trend reversal due to an overbought market condition. Similarly, a breakout in MFI suggests that capital is exiting the asset, pointing to diminishing buying pressure and signaling a potential downturn.

The analyst’s prediction of a 40% crash in XRP’s price suggests a drop from its current value of $1.11 to approximately $0.66. Contributing to this outlook is the observation that XRP’s price action currently lies outside the Bollinger Bands, which assess price volatility.

With 95% of price movements typically occurring within the bands, prices straying outside often indicate a pullback or correction towards the mean, currently at $0.73. The inward curvature of these bands further suggests buyer exhaustion, heightening the likelihood of a price reversal.

Interestingly, the majority of traders remain bullish on XRP, which the analyst identifies as a contrarian signal for the cryptocurrency’s price trajectory. While the possibility of continued upward momentum exists, the present indicators hint at a lower probability of such a trend.