XRP Price Plunge Warning: Analyst Urges Investors to Halt Buying Amid Bearish Signals

A prominent market analyst is sounding the alarm for XRP investors, urging them to cease buying the cryptocurrency. A critical technical pattern, historically preceding massive price crashes, has reportedly emerged in XRP's structure, signaling a potentially severe downturn for the digital asset.

Historical Patterns Point to Significant Downside Risk

Market analyst Steph Is Crypto issued a stark warning to the crypto community, advising against any further XRP purchases. The analyst highlighted a bearish crossover on the monthly Moving Average Convergence Divergence (MACD) indicator for XRP. This specific formation has appeared only twice before in XRP's history since its inception in 2012, and each instance was followed by a devastating price collapse. For example, a similar bearish crossover in 2019 led to an over 84% crash, while another in 2022 triggered a deep 67% price decline. Both historical patterns occurred after major bull market rallies, aligning with the current market cycle.

Current Market Conditions Fuel Uncertainty

XRP's price momentum remains weak, barely sustaining above the $2.00 mark. The cryptocurrency has experienced a notable decline, dropping over 15% this month, approximately 2.2% in the past week, and a substantial 16% year-to-date, according to CoinMarketCap data. Adding to the bearish sentiment, XRP's Fear and Greed Index has slipped to 42, moving closer to the "fear" zone. This market uncertainty, coupled with the cryptocurrency's sluggish price action, reinforces the analyst's caution, suggesting that if the historical pattern repeats, XRP could revisit significantly lower price ranges. Investors are advised to consider this historical context seriously before making further investment decisions.