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XRP Enters Falling Wedge, Here's What It Means

Mon, 07/03/2023 - 17:00
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Arman Shirinyan
XRP is falling, but it could be just part of broader acceleration
XRP Enters Falling Wedge, Here's What It Means
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In the latest developments, XRP is showcasing a significant technical pattern, a descending wedge, on its trading chart. As it currently trades around the $0.48 mark, after losing approximately 0.7% of its value, the implications of this pattern are worth examining.

A descending wedge is a bullish reversal pattern typically found in downtrends. This pattern is characterized by a price range that narrows over time due to lower lows and even lower highs. The consolidation, combined with the descending trajectory, creates a wedge shape.

Shiba Inu
Source: TradingView

So what does this mean for XRP? Essentially, the formation of a descending wedge often signals a potential price reversal. While the wedge can continue to form over time, a breakout usually occurs in the opposite direction of the wedge's slope. In XRP's case, this would signify a bullish breakout.

Given the current market conditions and XRP's trading pattern, the token could soon be eyeing a trend reversal. However, predicting the exact breakout point from the descending wedge is tricky. Ideally, traders often look for a significant increase in volume accompanying the price breakout from the upper trend line of the wedge.

It is important to note that while the descending wedge is generally a bullish pattern, it does not guarantee a price surge. Investors should tread with caution and consider other market indicators before making any decisions.

PEPE enters stagnation

The once booming meme token Pepe (PEPE) appears to have hit a standstill as its impressive trajectory of growth encounters a wall of selling pressure. This comes as a sizeable group of whales have decided to cash in on their gains, instead of banking on a continued climb to a new all-time high.

At present, PEPE trades around the $0.0000016 mark, representing a 60% decrease for holders who acquired the token at its peak. This drop in price mirrors the noticeable decline in trading volume, which is currently at its lowest point.

PEPE up 18% to Lead Meme Coin Rally, Here's What to Watch This Week

The sudden change in market sentiment is not unusual in the world of meme tokens. However, it does raise the pertinent question of what's next for PEPE.

One of the critical factors that will determine PEPE's future is how the market absorbs this wave of selling pressure. If the number of new buyers can outweigh sellers, PEPE may find the support it needs to make a rebound. Conversely, if the whales continue to dominate selling activity, the token could face further depreciation.

Another key aspect to consider is the overall market climate. Meme tokens tend to flourish during bull markets, but they are also often the first to be hit during downturns. Therefore, wider market trends will undoubtedly play a role in PEPE's trajectory.

Moreover, the utility and future developments of PEPE should not be overlooked. Meme tokens often struggle to maintain their value due to the lack of tangible utility or long-term plans. However, if PEPE can introduce innovative features or collaborations, it could potentially create new demand and reignite interest in the token.

Unexpected guest

Verge (XVG), a privacy-centric cryptocurrency, recently piqued market interest with an astonishing 100% surge. The sudden growth has left investors wondering about the catalysts behind this unexpected market movement.

However, as the recent surge unfolded, it became clear that no specific event or update was driving the rally. The primary reasons behind this sudden growth remain uncertain, leading to speculation about potential triggers.

Shibarium's BONE Pumping, Here Are Possible Reasons

The privacy focus of Verge could indeed play a part in its success, particularly at a time when issues around data security and privacy are gaining global attention. However, if this were the sole cause, similar privacy-focused cryptocurrencies like Monero would likely also show signs of a rally, which is currently not the case.

Another factor to consider is the enormous surge in trading volume for Verge. This sudden influx in trading activity often signifies heightened interest in the asset, potentially attracting new investors. Increased market activity can lead to price volatility, which could explain the abrupt surge in Verge.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.