Rare Chart Pattern Signals Possible XRP Price Drop: Crypto Expert Severino's Analysis

Tony Severino, a crypto analyst, has revealed a rare chart pattern that paints a bearish (negative) outlook for the XRP price. This comes amid a downtrend in the market, which has raised concerns that XRP has reached its peak in this market cycle.

In a recent post on X, Severino reports that the monthly LMACD (Lagging Moving Average Convergence Divergence) for XRP has made a bearish crossover for only the third time ever. Historically, the previous two bearish crossovers resulted in an 87% and 71% drop in price following the signal, respectively. While this indication remains unconfirmed at this time, Severino notes that bulls (buyers) will need to push the XRP price significantly higher this month to prevent a confirmation of the signal. If they fail to do so, further price declines are on the horizon.

Market Situation and Risks for XRP

Severino’s analysis comes at a time when the crypto market is under pressure, which has led to a drop in the XRP price. The altcoin is on the verge of dipping below the psychological $2 level—a barrier it breached during the $19 billion liquidation in October. Notably, crypto analyst CasiTrades previously predicted that XRP could even drop to $1,4 before bottoming out.

However, the analyst believes that this price drop for XRP offers an ideal opportunity to 'buy the dip'. He expects that the altcoin could eventually rise to a new all-time high, with a potential of even $10. From a fundamental point of view, there are also positive signs for XRP, which could contribute to a significant price recovery.

This is how the launch of the XRP spot is going ETF scheduled for November 13th by Canary Capital. Additionally, Grayscale and Bitwise have updated their documents, implying that their product could also hit the market soon. Ripple also recently launched a crypto-prime brokerage in the US to offer OTC trading for XRP, RLUSD, and other crypto assets.

Crypto analyst Ether states that the XRP price is preparing to break above the $3,1 resistance level soon. He noted that the current resistance is likely to collapse as the altcoin’s price regroups above the strong support around $1,9. Each test of this level weakens seller defenses as demand increases and market momentum builds.

Ether adds that the steadily increasing accumulation above this strong support indicates growing buyer control, suggesting energy is building for an explosive move. According to him, a potential XRP price breakout is no longer a matter of “if” but “when.” As this plays out, CasiTrades has indicated that XRP is targeting the $2,04 and $1,72 support levels as part of the latest downward wave.

Frequently Asked Questions

What does the LMACD bearish crossover mean for XRP?
The bearish crossover of the LMACD indicates potential bearish momentum. Historically, this has led to significant price declines, warning investors to exercise caution.

Is it a good time to buy XRP?
Experts like Severino and Ether suggest that a price drop presents opportunities for investors to purchase XRP at lower prices, with the prospect of a future recovery to higher levels.

What are the factors that can help XRP recover?
The upcoming launch of the XRP ETF and the new trading opportunities offered by Ripple could help drive XRP’s price growth, providing a solid foundation for a rebound given current market conditions.