In the volatile world of cryptocurrency, XRP continues to face downward pressure amid technical and market challenges. After failing to sustain its position above the $2 mark, the ripple coin is now exploring further declines, prompting traders to reassess its recovery prospects. With key support levels in sight and rising selling activity, the outlook for XRP remains cautious as market sentiment shifts.
- XRP dropped 3% over the past 24 hours, trading at $1.93, as it struggles to hold above the $2 resistance level.
- A classic megaphone pattern on the weekly chart signals possible further correction, with a target as low as $0.88.
- Technical indicators reveal increasing downside momentum, with weekly RSI falling to 39 and rising sell pressures evident from realized losses.
- Over 41.5% of XRP holders are underwater, hinting at heightened sell-side risk amid mounting losses.
- XRPโs realized losses have surged to seven-month highs, reflecting intensified market distress and potential for sharper declines.
Classic XRP pattern targets $0.88
The XRP/USD trading pair is forming a megaphone or broadening wedge pattern on the weekly timeframe, a technical formation often signaling increased volatility and potential trend reversals. This pattern, characterized by rising highs and lower lows, suggests that a significant correction may be imminent. A decisive break below the patternโs lower boundaryโaround the $1.80 levelโcould accelerate XRPโs decline. The projected target based on this pattern is around $0.88, representing a 54% decline from current levels.
The immediate resistance levels to watch are the 100-week simple moving average (SMA) at $1.60 and the 200-week SMA at $1.05, both crucial for confirming the patternโs breakout and trend direction. The weekly relative strength index (RSI) has fallen sharply from overbought levels of 91 in December 2024 to 39, indicating mounting selling pressure and decreasing momentum. Meanwhile, XRPโs Net Unrealized Profit/Loss (NUPL) metric has shifted from euphoria to denial, with investor sentiment becoming increasingly anxious.
More than 41.5% of XRP investors are currently underwater, raising concerns about potential panic selling. Historical data reveals that similar setups back in 2018 and 2021 preceded sharp market corrections, raising warnings of a possible extended downturn in the coming weeks.
XRP realized losses rise to seven-month highs
During recent trading sessions, XRP dipped to an intraday low of $1.81, levels last seen in April, driven by mounting sell-off activity. Blockchain analytics confirm that many investors are liquidating their holdings at a loss, reminiscent of past major market crashes. According to data from blockchain analytics platform Glassnode, XRPโs realized losses have surged to levels not seen since April, with the 30-day exponential moving average (EMA) of daily realized losses reaching approximately $75 million per day.
โThe 30-day EMA of daily realized losses has spiked to about $75 million per day,โ Glassnode reported on social media. This surge comes just before XRPโs price fell below the $2 mark, shedding 50% from its peak of $3.66 recorded in mid-July.
The combination of weakening on-chain demand and profit-taking by large holders or whales could exacerbate the downside risks, as previously noted by market analysts. As cryptocurrency markets remain sensitive to macroeconomic trends and regulatory developments, XRPโs ongoing decline underscores the importance of cautious trading and research when navigating the crypto markets.
