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XRP price continued its correction trend, falling to $0.64, its lowest level since Feb. 28

A descending triangle breakdown coupled with XRP’s correlation with Bitcoin can put downward pressure on price. At press time, the XRP price is changing hands at $0.6958.

xrp-price-continued-its-correction-trend-falling-to-0-64-its-lowest-level-since-feb-28

XRP/USD 4-hour chart | Source: TradingView

Could XRP price lose another 70% by Q3?

The drop increases the likelihood of triggering a bearish reversal setup known as a descending triangle. While these patterns often form during a downtrend, their appearance after strong price moves often marks the end of an uptrend.

XRP has been in a similar trading channel since April 2022, capped by two trend lines: a lower horizontal line and an upper-down slope.

The pattern is now resolved as XRP returns to the support trendline, coinciding with the 50-week exponential moving average (50-week EMA; the blue wave), five weeks after testing the upper trendline as resistance.

Suppose a breakdown occurs below the lower trendline of the triangle, along with increased volume. In that case, the price of XRP could drop to a level of length equal to the maximum distance between the upper and lower trendlines of the structure, as shown in the chart above.

That would put XRP towards $0.19, about 70% below its April 25 price. The bearish outlook for XRP mainly comes after a similar sell-off occurred across Bitcoin (BTC), Ether (ETH), and the rest of the crypto market. The correlation between Bitcoin and XRP was 0.84 on April 25. A perfect score of 1 shows that the two assets move in complete sync.

xrp-price-continued-its-correction-trend-falling-to-0-64-its-lowest-level-since-feb-28

XRP/USD correlation efficiency with BTC/USD | Source: TradingView

Furthermore, Bitcoin could drop to January lows below $33,000, asserts Mark Newton, technical strategist at Fundstrat. BTC’s initial pullback to $36,300 “should lead to a full retest of $32,950 without too much trouble,” he added.

Due to its positive correlation with Bitcoin, XRP could fall further to trigger a descending triangle breakdown setup.

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