XRP Faces Critical Juncture as Bearish Chart Pattern Resurfaces, But Bullish Catalysts Loom XRP finds itself at a pivotal moment, with a rare bearish chart formation resurfacing, drawing parallels to previous significant price crashes. Crypto analyst Tony Severino has highlighted a technical signal that previously led to sharp declines for the digital asset, while other analysts offer a mixed outlook, pointing to both potential further drops and strong bullish catalysts on the horizon.
The Looming Bearish Signal and Price Risks
Crypto analyst Tony Severino has identified a recurring pattern in XRP's monthly LMACD (Moving Average Convergence Divergence) chart, which has crossed bearish for the third time in its history. Historically, the previous two bearish crosses were followed by severe price corrections of 87% and 71%. While the current signal remains unconfirmed, Severino warns that XRP bulls must push the price significantly higher this month to invalidate the pattern. This warning comes amidst a broader market downturn, placing XRP at risk of falling below the crucial psychological $2 level, a threshold it breached during a major liquidation event in October. Analyst CasiTrades previously predicted XRP could drop as low as $1.4 before finding a bottom.
Emerging Catalysts and Breakout Potential
Despite the bearish technicals, several fundamental developments could spark a significant rebound for XRP. Canary Capital is poised to launch a spot XRP Exchange Traded Fund (ETF) on November 13, with Grayscale and Bitwise also amending their filings, signaling potential future ETF approvals. Furthermore, Ripple recently launched a crypto prime brokerage service in the U.S., offering Over-The-Counter (OTC) trading for XRP and other digital assets. On the technical front, crypto analyst Ether suggests XRP is primed to break above the $3.1 resistance level, observing steady accumulation above the $1.9 support. Ether believes a major price breakout for XRP is no longer a question of "if," but "when," citing weakening seller defense and increasing market pressure from sustained buying. However, CasiTrades notes that XRP is still eyeing potential support levels at $2.04 and $1.72 as part of a final downward wave. Currently, XRP is trading around $2.2, experiencing a over 6% decline in the last 24 hours.
