XRP, even the last line of defense collapses... will it fall to $1.21?

▲ XRP

XRP broke below its key symmetrical triangle support trendline, raising the possibility of further declines. After failing to break above the upper resistance line despite recent rebound attempts, XRP also lost its lower trendline, making the $1.21 support level the next key price point.

The Crypto Basic reported on May 21 (local time) that XRP broke below the lower support trendline of a symmetrical triangle that had lasted for several months. Market analyst Cryptorphic assessed this breakdown as a bearish development for bullish investors. He analyzed that XRP's next major support line is around $1.21, coinciding with a crucial horizontal support trendline.

XRP attempted to rise amidst the overall rebound in the cryptocurrency market in late April. During this process, it formed consecutive highs of $1.45 on May 6, $1.50 on May 10, and $1.54 on May 14. Upon reaching $1.54, XRP retested the upper trendline of the symmetrical triangle but failed to break through the resistance in that area.

Subsequently, as the bullish momentum in the cryptocurrency market weakened, XRP retreated from its high of $1.54. On May 15, it fell by 3.43% in a single day, recording its largest daily decline in over a month. The downtrend continued, and XRP fell to around $1.34, near its late April low, the previous day, breaking below the lower support trendline.

This symmetrical triangle structure began to form after XRP retreated from its January high, fell to a low of $1.10 in early February, and then quickly recovered. Subsequently, the price repeatedly formed lower highs and lower lows, gradually consolidating into a narrower range. Cryptorphic noted on May 11 that XRP was nearing the end of the structure, and no definitive upward breakout or downward breakdown had yet occurred.

Cryptorphic believed that a significant move could occur once the market decided on a direction. However, he warned that the structure appeared weak, and if XRP broke down, selling pressure could take control and lead to lower price levels. With this break below the lower trendline, the bearish scenario he mentioned has materialized.

However, an analysis also suggested that a complete confirmation of the downward breakdown would require a retest of the previous lower trendline as resistance. If XRP breaks above this trendline and re-enters the symmetrical triangle, it could invalidate the bearish trend. Conversely, failure to reclaim the trendline could lead to a deeper decline.

In this case, Cryptorphic emphasized that XRP's next key support level is $1.21. This represents an additional 12% decline from the current level. As of the time of reporting, XRP had recovered significantly from its low of $1.34 and was trading around $1.38, attempting to reclaim the lower trendline.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*