XRP is at risk of a sharp April flash crash, warns a prominent crypto analyst, who highlights critical support levels that could be tested if selling pressure escalates. With market volatility rising and key technical indicators flashing warning signs, here’s what traders need to know to navigate potential downside risks.
Why XRP Faces Flash Crash Risks
1. Bearish Technical Setup
- Descending Triangle: XRP has been forming a descending triangle pattern, a bearish continuation signal.
- RSI Weakness: The Relative Strength Index (RSI) is trending downward, showing weakening momentum.
- Volume Decline: Lower trading volume suggests fading buyer interest.
2. Macro & Regulatory Pressures
- SEC Lawsuit Uncertainty: Lingering legal risks from Ripple’s case with the SEC could trigger panic selling.
- Bitcoin Influence: If BTC drops below $60K, altcoins like XRP could see amplified losses.
3. Liquidation Risks
- A drop below $0.50 could trigger cascading liquidations, accelerating the sell-off.
How Low Could XRP Go?
The analyst outlines two potential crash scenarios:
Moderate Crash:
- Drop to $0.48 (March 2024 low).
- Likely if Bitcoin holds $60K but altcoins weaken.
Severe Crash:
- Plunge to $0.40 (December 2023 support).
- Possible if Bitcoin corrects sharply and XRP loses key support.
Key Levels to Watch
- Support: 0.50(psychologicallevel),0.50(psychologicallevel),0.48 (March low).
- Resistance: 0.55(recentrejectionzone),0.55(recentrejectionzone),0.60 (bullish breakout level).
What Traders Should Do
- Set Stop-Losses: Protect positions below $0.50.
- Watch Bitcoin: A BTC breakdown could worsen XRP’s drop.
- Wait for Confirmation: Avoid catching falling knives—look for stabilization before re-entering.
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