XRP price today remains below the crucial resistance level at $2 as the trade war escalates. Ripple trades at $1.82, much lower than the year-to-date high of $3.4, and near its lowest swing since December last year. This article assesses why the coin is on the verge of a big crash after Ray Dalio warned of a once-in-a-lifetime collapse of the economic order.
Ray Dalio Warns of an Economic Collapse
Dalio, the founder of the biggest hedge fund globally, has warned that the world is going through critical changes that could affect the economic and political order. He cited the surging global debt, with the US sitting on $36.7T in public debt and a growing budget deficit.
Dalio also warned that the economic collapse could lead to a sharp decline in the stock market, which would hurt cryptocurrencies like XRP. Historically, stocks and crypto have a close correlation because they are widely seen as risky assets.
His statement comes as global stocks crashed. Futures tied to the Dow Jones and Nasdaq 100 indices plunged by over 1% on Wednesday. This means that US investors have lost at least $10T in the last few days. The crypto market has also crashed, with the industry shedding over $1.5 trillion in value.
Still, on the positive side, XRP’s utility is expected to grow. Ripple Labs is seeking to replace the SWIFT network, and its acquisition of Hidden Road will increase its usage in the long term. The SEC is also considering approving over 10 spot XRP ETFs later this year.
XRP Price Technical Analysis: H&S Pattern is a Big Risk
The 1D chart points to a steeper Ripple price plunge in the next few days. The most bearish factor is that it has formed a head and shoulders chart pattern, which analysts believe is a highly accurate continuation sign. In this case, the head is at $3.43, while the shoulders are at about $3.
XRP price has now plunged below the neckline of this pattern at $1.9195, which coincided with the 50% Fibonacci Retracement point. It has also formed a death cross pattern, another risky sign that happens when a longer-term, say 200, and a shorter-term, say 50, moving averages cross each other. Ripple has also crashed below the Ichimoku cloud indicator.
XRP Token Price Targets
The best way to get the next target for the XRP price is to measure the longest distance of the H&S pattern. In this case, it has a depth of about 43%. After that, you measure the same distance from the neckline. This measurement brings the next target at $1.062, which is slightly above the 78.6% retracement level.
On the other hand, the bearish Ripple outlook will become invalid if the coin rises above the 38.2% retracement at $2.20.
The post XRP Price on the Verge of Big Crash as Ray Dalio Warns of an Economic Collapse appeared first on CoinGape.