XRP Price: $1000 target seems far fetched amid predictions of drastic fall to $0.20 levels

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Analyst Cheeky Crypto has addressed the XRP community, opening up about the confusion and speculative chatter surrounding Ripple’s price. His recent segment delved into various aspects: legal battles with the SEC, Ripple’s strategic collaborations in real-world assets, and market reactions to these developments. However, the market sentiment around XRP appeared mixed, balancing legal uncertainties with optimism over Ripple’s innovations. 

Amidst this, there was speculation about XRP’s price milestones, with one analyst boldly suggesting a $1,000 target, contingent upon breaking resistance levels and positive legal outcomes. Technological advancements in the XRP Ledger were noted as pivotal for future price movements, potentially enhancing utility and adoption. 

Bearish Outlook and Technical Indicators

He began by analyzing XRP’s recent price volatility, noting a major downturn on June 7th when prices fell to a low of $0.45. His analysis revealed a bearish outlook based on various indicators, suggesting potential further downside for XRP in the short term. 

Specifically, he pointed out that XRP’s current price action is below the 200-day EMA (white line), which stood at $0.548 during the video. Additionally, the 50-day EMA (blue line) and the 50-day SMA (yellow line) indicated ongoing bearish sentiment, reinforcing the cautious stance.

Resistance Levels and Chart Patterns

Discussing chart patterns, he brought to attention the presence of lower highs and lower lows on the daily timeframe, marked by trend lines that signified a bearish trend. Despite this, he also discussed the possibility of a breakout to the upside eventually, given historical patterns of such formations.

Addressing resistance levels, he identified a range from $0.49 to $0.53, previously a support zone that had now turned into resistance post the June 7th drop. This shift, he explained, was due to trapped buyers from earlier positions now using this level to exit cost-neutrally. He further detailed an ascending wedge pattern on the daily chart, typically seen as bearish, suggesting potential further consolidation or downside before a possible upward move.

He said the price might drop back to around 41.88 cents, the lowest point seen since April 13th. He also considered it could go even lower, possibly between $0.20 and $0.33, though he thought this was less likely. He suggested using these price dips as chances to buy more XRP at lower costs over time.