XRP is currently facing a critical technical juncture, with its monthly chart signaling a severe macro warning. Technical analysis indicates that the cryptocurrency could be on the brink of an alarming 88% price collapse, potentially plummeting to levels not seen in years if key support is lost.
A Looming Technical Precipice
The monthly chart for XRP reveals a precarious situation, with the asset struggling to maintain its position above the Bollinger Bands' midline, specifically around the $1.89 mark. This is identified as the first serious macro warning since its recent breakout. Should XRP fail to hold this critical midline and it flips into resistance, the next significant support level is projected to be a brutal 88% plunge to $0.20. This stark forecast is based on the "volatility corridor" observed on the charts, marking $0.20 as the next logical level.
The 'All or Nothing' Scenario Unfolds
This technical setup suggests an "all or nothing" situation for XRP. The monthly candles are observed to be closing into the flattened mid-band "like dead weight," indicating a significant loss of bullish momentum. Historically, a break below this band in 2020 led to a two-year bear market for XRP. The current scenario is deemed even more severe, as the next major support, the lower Bollinger Band, now sits at a much deeper $0.20, compared to $0.60 in previous downturns. While not a guaranteed outcome, this analysis locks $0.20 into the chart's language as a real and increasingly possible scenario, with every day spent below the mid-band strengthening the bearish signal.
