XRP is still on fire. Over $3.13 today. Yet, several technical and on-chain indicators suggest a correction is coming soon. Those recent surges are capturing the imagination of investors. A major move of XRP by Ripple’s long-time co-founder and the formation of bearish technical patterns are contributing to growing worries. A number of market forces are converging to indicate a further price drop is likely. Some analysts are predicting as much as a $3 trillion drop in the coming weeks.
Ripple Co-founder's Transfer Sparks Market Jitters
As many spotted earlier today, Ripple co-founder Chris Larsen transferred nearly $140 million worth of his XRP to different exchange addresses. Relatedly, large transfers of that magnitude frequently spook investors, resulting in predictable but nevertheless dangerous market volatility. As one could expect, the market placed a quick bet against the news, which added to pre-existing unease about XRP’s short-term outlook.
Is XRP About to Crash Again? Three Indicators Signal Risk" - "www.techi.com"
In the past, when the first of that XRP is transferred, it has led to a spike in selling pressure. Usually, recipients choose to sell their assets on exchanges. This additional supply is bad enough on its own to be bearish for XRP’s price, but when looked at alongside other bearish signals, it’s particularly damaging.
Bearish Technical Patterns Emerge
XRP’s price chart has formed a textbook bearish inverse cup-and-handle pattern on the daily timeframe. This pattern typically indicates a reversal of trend after a long advance. This pattern indicates a possible 25–40% decline, aiming for a $1.20–$1.50 price area. XRP’s RSI breakdown fractal has just broken uptrend support, suggesting more weakness down to $2.75. Collectively, these technical indicators don’t bode well for XRP’s short-term prospects.
The bearish outlook deepens as the 200-day and 50-day moving averages create a death cross. Historically this pattern often foreshadows huge momentum shifts and defeats down the line. This death cross setup corroborates previous studies forecasting a possible 25% correction in early 2025. Such an alignment dramatically increases the chances something big causes prices to drop by a lot.
Key Support Levels to Watch
The current most important support level for XRP is at $3.00. A further confirmed breakdown beneath this level risks triggering panic-fuelled capitulation, which could see XRP plunging back down towards $2.75 or even $2.40. If the price broke through $2.20, deeper targets near $1.10 would get exposed.
If XRP manages to bounce convincingly above $3.25, it will confirm the bearish setup invalid. If so, it would open the door to new all-time highs. With the 200-3D EMA at $1.24 capping downside risk, the path of least resistance seems to be down. XRP’s realized price attraction is now above $2.40, which will likely pull downwards, creating additional downward pressure.
