Crypto analyst ChartNerd has presented a detailed technical analysis of XRP's recent price decline, framing it as a deliberate market maneuver rather than a sign of fundamental weakness. In a series of posts on social media platform X, ChartNerd argued that the crash was orchestrated to flush out weak hands and eliminate leveraged positions, creating widespread panic among retail traders.
Despite the fear, the analyst points to strong underlying support. XRP is currently testing key Fibonacci retracement levels, with the 0.5 level at $2.0674, the 0.618 level at $1.9929, and the 0.786 level at $1.8915 all acting as potential support zones. ChartNerd's analysis shows XRP trading just above a long-standing horizontal support zone that has held firm for several months, limiting further downside.
From a momentum perspective, ChartNerd highlights a potential shift. The Moving Average Convergence Divergence (MACD) indicator is compressing after a prolonged negative period, with its histogram bars narrowing—a sign of waning bearish momentum. Furthermore, the Relative Strength Index (RSI), after a long downtrend, has touched the lower range of its channel and begun to turn upward, suggesting possible exhaustion among sellers.
The chart also reveals a falling wedge pattern, which is typically a corrective phase that can precede a breakout. ChartNerd suggests that while the price action appears bearish in the short term, this setup, combined with the held support and shifting momentum indicators, could signal a potential recovery. The analyst concludes that institutional investors are likely capitalizing on the dip, viewing it as a strategic buying opportunity, and that a long-term upward trend for XRP remains intact if these support levels hold.
