Crypto analyst Bobby A warns about this the XRP price may soon be in trouble. He says the big monthly chart is showing weak signs, and this could mean the market is turning bearish again. The analyst thinks the price may have to fall further before it can rise further.
Bearish signals displayed on the monthly XRP price chart
Bobby A says the big XRP chart doesn’t look healthy right now. He explains that there are many important monthly indicators have crossed bearish. He says XRP is trading below the 1,618 level, and the price action there looks more like a rejection than a breakout. He thinks this rejection comes at a terrible time for XRP, noting that the monthly candle closes near the BMSB line, another dangerous sign for the price.
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Bobby A reminds traders that when the Bressert indicator crosses bearish on the monthly chart, history shows that this has never been good for XRP. He believes that history could repeat itselfand these bearish signals are currently clearly visible on the chart, indicating that the medium-term trend may not be strong. His analysis says that XRP will face the close of the monthly candle again in six days, and facing it while price action is weak is usually not a good sign. He is concerned because the overall structure of the graph is weaker then force at this time.
He explains that when a map shows this type of technical damage, it is wise to stay alert. He says traders should focus on risk management at times when the big charts are starting to flash warning signs. He shares this because he previously relied on his chart study when XRP was below $0.30, and now he has to rely on what he sees again with XRP above $2. He says the market can change very quickly, and traders need to be ready for those changes.
XRP may drop to lower support before rising again
At the moment, XRP is already making a small move downwards. Bobby A says this retracement is happening in real time. He warns that XRP could be turned around again and tested again lower levels of price support. If this happens, the token price could fall below $1 to find more substantial support before attempting to recover. He believes there is a real and present risk the price will crash below $1 if sellers keep pushing it down.
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He advises traders to protect their money and manage their transactions carefully. He says capital safety must come first in times like these. Even though he still believes in the long-term future of XRP and remains a strong supporter of the project, he thinks the odds right now point to lower prices in the medium term. He says this is because the latest market signals are not strong enough to make a another big bullish move.
Featured image created with Dall.E, chart from Tradingview.com