The cryptocurrency is still trading within a descending channel on the weekly timeframe, and in this context, an interesting technical analysisof crypto outlines a bearish scenario of what could happen if XRP loses its current structure.
According to CoinsKid, XRP has been going sideways since December of last year, but is finding stability along the bull market support band (BMS). He described the current moment as the last bullish case for XRP, warning that a breakdown through the BMS could erase that bullish outlook entirely.
In his words, “Lose the BMS and the bullish support at $1.90 and XRP could be in free fall.” Despite this, he noted that he still remains cautiously bullish for now, but the caution stems from the visible threat of losing these crucial levels.
The weekly candlestick chart that accompanied his post illustrates the situation clearly. XRP is sitting inside a descending channel, and the last three weekly candlesticks have been red after XRP was rejected at the upper trendline of this channel in September.
The next major support level is highlighted at $1.90, which coincides with a bullish support zone dating back to an order block formed in June.
Interestingly, CoinsKid’s chart also leaves room for optimism. A bullish projection shows a scenario where XRP breaks through the channel’s upper trendline and rallies above $4. At the time of writing, XRP is trading at $3.05.
