Warning for Crypto Investors: Market Analyst Advises Against Buying XRP

A market analyst has issued a cautionary note to crypto investors regarding the purchasing of XRP, as the price appears to be vulnerable to a significant drop. This analyst has observed a concerning technical pattern in XRP's price history that has previously led to severe losses.

Key Takeaways

A crypto analyst warns that XRP may be headed for a major price crash due to a troubling technical indicator.
This bearish pattern has emerged only twice before, resulting in significant declines of over 84% and 67% in the past.
XRP's current price is hovering slightly above $2.00, showing weak momentum and increasing market fear.
The analyst urges traders and investors to reconsider buying XRP at this time due to high risks.

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Analyst Warns Against XRP Purchases as Price Decline Approaches

Market analyst Steph is Crypto has sent an urgent warning throughout the crypto community, advising traders and investors to refrain from purchasing XRP for the time being. He shared insights on a recent X post, indicating that long-term indicators for the altcoin reflect a concerning trend that could echo downturns from preceding market cycles.

Through his analysis of the monthly Moving Average Convergence Divergence (MACD) for XRP, Steph has identified a newly forming bearish crossover, which suggests a decline in momentum. He noted that XRP has experienced this bearish crossover only twice since its launch in 2012, with each occurrence leading to dramatic price drops of over 50%.

In 2019, the first instance of this pattern saw XRP plummet by more than 84%. Following a second crossover in 2022, the coin experienced a significant decline of approximately 67%. It's important to note that these bearish signals followed major bull markets. For instance, in 2018, XRP's price soared to an all-time high above $3.84, and the steep decline observed in 2022 was a result of an explosive bull run in 2021, one of the strongest periods in crypto history.

Steph is Crypto now foresees a similar bearish crossover in the current cycle, indicating that conditions might be ripe for another price crash. He expressed regret upon noticing this formation on XRP's chart, especially given his typically positive outlook on the cryptocurrency. The analyst emphasizes the need for traders to take this historical pattern seriously, as XRP might revisit lower price levels if this trend continues.

XRP Price Momentum Shows Weakness

Currently, XRP is experiencing a downward trend, struggling to maintain a price above $2.00. According to CoinMarketCap, the cryptocurrency has decreased by over 15% this month, around 2.2% in the past week, and has faced a total decline of approximately 16% so far this year.

With weak price momentum, XRP shows minimal signs of immediate recovery. The cryptocurrency's Fear and Greed Index has dropped to 42, approaching the "fear" threshold. This growing market uncertainty is attributed to XRP's sluggish price movement, especially given it had previously exceeded $3.00 earlier this year and nearly revisited its all-time high.

XRP price chart from Tradingview.com
Price moves lower with market decline | Source: XRPUSDT on Tradingview.com