XRP price has moved into a bear market, and Jesse Colombo, a popular analyst, expects that it is on the verge of a big crash. Ripple was trading at $2.20 on Monday morning, down by over 35% from its highest level this year.
Jesse Colombo Predicts Ripple May Crash
The XRP price has crashed because of the ongoing weak sentiment in the crypto industry, where most tokens have imploded. Bitcoin, which often guides the crypto industry’s performance, has dropped from a record high of $109,300 to $82,000 today. Most altcoins have crashed by a worse margin.
Ripple has also dropped due to concerns about the approval of a Strategic XRP Reserve fail. Data by Polymarket shows a 24% chance that the US will have such reserves. While a Strategic Bitcoin Reserve is possible, analysts doubt whether Congress will approve XRP and other altcoin reserves.
Some analysts are pessimistic about the next phase of the XRP price action. Jesse Colombo, a popular analyst with over 70k followers on X, believes that the coin is on the verge of a bearish breakdown. He cited the forming head and shoulders pattern, which we wrote about here.
A head and shoulders pattern is a popular reversal chart pattern made up of three key sections: head, shoulders, and neckline, where the neckline connects the lowest points of the two troughs between the three peaks.
In XRP’s case, the head is at the year-to-date high of $3.4, the shoulders are at $3, while the neckline is at $2. Therefore, a plunge below the $2 neckline will indicate further downside, with the next key level at $1, approximately 55% below the current level.
READ MORE: XRP Price Prediction as Ripple Avoids Disaster For Now
Wyckoff Theory Points to an XRP Price Crash
Another factor contributing to a potential XRP price crash is the Wyckoff Theory. This theory identifies four key segments assets go through: accumulation, markup, distribution, and markdown.
XRP price has remained in the accumulation phase since 2020 and then moved to the markup phase in November last year. The coin has now moved into the distribution phase, which explains why it has largely moved sideways in the past few months.
The XRP price is expected to decline in the markdown phase of the Wyckoff Theory, characterized by higher supply and lower demand. Therefore, a combination of the Wyckoff Theory and the head-and-shoulders pattern points to more declines ahead.
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