With an inverted double-top pattern near its recent local high of $0.71, XRP lately faced a possible breakout.
The inverted double-top formation, which is sometimes thought of as a bullish reversal pattern, had the ability to change the course of XRP’s trajectory to one that was more favourable. Unfortunately, the expected pattern did not appear. The price of XRP dropped below the $0.7 mark as a result of its inability to maintain this significant trend.
The failure of the pattern formation provides XRP with a possible route down. If the digital asset doesn’t find solid support soon, a further decrease may be on the horizon, according to the price trend. The 21-day exponential moving average (EMA) appears to be the last line of defence in this respect. This important support level can keep the price where it is now and stop it from falling further.
Concerns are raised by the falling trade volume that comes along with the price drop. Low purchasing interest is frequently indicated by low trading volume, which might increase price pressure. While it cannot be said with certainty that price movement will go down, it is unfavourable for any prospective rebound.
What led to the critical pattern for XRP failing? The explanation probably resides in the existing uncertainty surrounding the asset as well as the general market attitude. Despite making progress in the SEC lawsuit, several attorneys have predicted that the corporation would almost certainly face an appeal, which may not be advantageous for the asset.
Additionally, given the general volatility of the crypto market, many investors could decide to err on the side of caution, which would lower demand for riskier assets like XRP. Ethereum and other assets of a similar nature exhibit the same pattern.
