Cryptocurrency analyst @Ripple_Effect11 is predicting an imminent XRP price crash in a new technical analysis shared via X. His prediction is based on a bearish breakout from a major triangle pattern that has been forming since the all-time high of $3.84 on January 4, 2018. The analysis paints a bleak picture for XRP in the coming months, with a potential drop to $0.07, depending on certain technical events.
Why XRP Price Could Collapse to $0.07
The Elliott Wave Theory, which forms the basis of @Ripple_Effect11’s analysis, is a form of technical analysis that predicts future price movements by identifying recurring wave patterns associated with investor psychology. The theory assumes that market movements essentially unfold in five “impulsive” waves followed by three “corrective” waves.
In the case of XRP, the analyst identified that the cryptocurrency has been in a corrective phase since its peak in 2018, which was marked by an ABC correction pattern. Wave A saw a sharp drop to $0.105 in March 2020. Wave B saw a partial upward correction to $1.96 in April 2021. Wave C, where XRP is currently located, is typically the final phase and includes another downward move, often completing the corrective phase.
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Analysis suggests that XRP is going through its sub-waves within this final wave C. It is currently in the third wave which is traditionally important in terms of the depth and length of the price movement.
It is worth noting that the chart also shows a large triangle formation that represents the price action of XRP over several years. In technical analysis, a triangle often represents a period of consolidation before the price takes off decisively in one direction.
According to @Ripple_Effect11, last week’s close below $0.42 confirmed the bearish breakout of this pattern and further supports the theory of a massive price crash. “Nobody is talking about this massive XRP triangle crash. Weekly close below $0.42 is extremely bearish,” he said.
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The analyst’s first target is $0.33 where there may be minor psychological support. A more important second target is at $0.18, which may represent a more solid historical support area. The third target is between $0.12 and $0.14, and may act as temporary support before more significant selling. This price represents the end of the third wave.
In the midst of the fourth wave, the crypto analyst expects the price of XRP to rise above $0.18 before the final fifth wave pushes XRP further down. The ultimate target is between $0.07 and $0.08, which would mean a decline of more than 80% from the current price level.
The technical indicators on the chart confirm these targets. The MACD is heading below its signal line, highlighting the bearish momentum. The RSI is approaching 45, indicating the absence of strong buying pressure and the possibility of further declines.
Ripple’s ruling could start a trend reversal
Adding context to the technical analysis is the ongoing lawsuit between Ripple and the SEC, which analysts expect to conclude by July 2026. The outcome of the legal battle is expected to have significant implications for the price of XRP.
“Smart money sees buy targets 3 and 4 as attractive ahead of the big utility pump from 2026 to 2030. Ripple Vs SEC started in 2020. XRP is classified as a non-security in 2023. Ripple wins the case and pumps XRP hard in 2026. Will you be patient?”, concludes the crypto analyst.
At the time of publishing this report, XRP was trading at $0.43448.
Featured image by Shutterstock, chart by TradingView.com