The price of XRP may be headed for a significant drop, according to a crypto analyst who has spotted a critical technical pattern signaling a potential sharp decline. The analyst notes this formation has only occurred twice in XRP’s history, each time followed by a severe loss. If history repeats, the cryptocurrency could face further declines. Traders and investors are advised to avoid buying XRP at this time due to increased risk.
Analyst Steph is Crypto has issued an urgent warning, telling traders and investors to “not touch XRP anymore.” In a recent video forecast shared on X, he pointed out that long-term indicators for the altcoin suggest a troubling setup similar to past market downturns.
His analysis of XRP’s monthly Moving Average Convergence Divergence (MACD) shows a new bearish crossover forming, indicating weakening momentum. According to the analyst, XRP has only formed this bearish crossover twice since 2012. Both previous instances led to dramatic price crashes, with the cryptocurrency losing more than half its value shortly after.
The first bearish crossover in 2019 was followed by an 84% crash. A second crossover in 2022 triggered a steep decline of about 67%. Notably, each bearish signal appeared after a major bull market: following the 2018 rally that pushed XRP to its all-time high above $3.84, and after the explosive 2021 bull market.
Steph is Crypto observes a similar bearish crossover forming in the current cycle, suggesting conditions may be aligning for another severe price drop. He expressed disappointment at spotting this pattern, given his typically bullish outlook on XRP. The analyst urges traders to take this historical pattern seriously and consider the possibility of XRP falling to much lower price levels.
XRP continues to trend downward, with its price struggling to stay above $2.00. The cryptocurrency has fallen over 15% this month, about 2.2% in the past week, and roughly 16% year-to-date, according to CoinMarketCap.
Momentum remains weak, with little sign of a near-term recovery. XRP’s Fear and Greed Index has dropped to 42, nearing the “fear” zone. This uncertainty persists despite XRP surpassing $3.00 earlier this year and nearly testing its all-time high.
Frequently Asked Questions
Of course Here is a list of FAQs about why a market analyst might advise crypto investors to stop buying XRP framed in a natural tone with direct answers
Beginner General Questions
1 Why would an analyst tell people to stop buying XRP
Analysts might give this advice due to concerns like poor price performance compared to other cryptos ongoing legal uncertainty from the SEC lawsuit or a belief that other projects have stronger growth potential
2 Is XRP a bad investment now
It depends on your risk tolerance Many see it as highrisk due to its legal overhang and price stagnation while others believe it will surge if Ripple wins its case definitively An analyst saying stop buying likely views the risks as too high for the potential reward
3 Whats the main problem with XRP right now
The biggest issue is the lingering uncertainty from the SECs lawsuit against Ripple Even though Ripple scored a partial victory in 2023 the case isnt fully resolved which creates regulatory risk and scares off some large institutional investors
4 Are they saying XRP will go to zero
Not necessarily Stop buying usually means allocate your money elsewhere for better returns not that the asset is worthless They may believe XRPs price will remain flat or underperform the broader market
5 Should I sell my XRP if I hear this
Dont make impulsive decisions based on one opinion Consider the analysts reasoning your original investment goals and do your own research If youre unsure consulting a financial advisor is best
Intermediate MarketBased Questions
6 What are the specific reasons an analyst might give
Common reasons include 1 Legal Overhang The SEC case isnt fully over 2 Price Action XRP often doesnt rally with the rest of the market 3 Competition Many other blockchain payment solutions exist 4 Centralization Critics say Ripple holds too much control over the XRP supply
7 What does underperformance mean in this context
It means that during major crypto bull markets XRPs price percentage increase is often much lower than major assets like Bitcoin or Ethereum leading to missed opportunity costs for investors
8 Could this advice be just a shortterm call
Yes