XRP Signals Crash as Price Breaks Support

What to Know:

• XRP has broken below a key multi-month support level around $2, raising concerns among traders about further downside risk.
• The technical breakdown occurs amid mixed signals, including potential bearish patterns and historical indicators suggesting a possible rebound.
• The price action matters for XRP liquidity and market sentiment, as a failure to reclaim $2 could lead to increased selling pressure and a move toward $1.

XRP is currently trading near $1.88 after falling below a crucial support level that had been in place for most of the year. This decline has put the asset under pressure, with traders closely watching the weekly candle close to gauge the next potential move. The breakdown occurs amid mixed signals, as technical patterns suggest potential downside while historical data hints at a possible rebound.

XRP Tests Multi-Month Support

XRP has breached its multi-month support trendline for the first time in 2025. This zone had previously served as a launchpad for several strong rallies. The recent decline has pushed the price below $2, with analysts noting that the failure to quickly reclaim this level confirms a technical breakdown. The support area has been tested multiple times since March, but the current move has not triggered a strong bullish response, indicating potential bearish pressure.

Double Top Pattern in Play?

Veteran trader Peter Brandt has pointed out a possible double-top pattern on XRP’s weekly chart. This pattern includes two local peaks with a neckline around the $2 support level. A failure to reclaim $2 could pave the way for a further decline toward $1. However, the Relative Strength Index (RSI) on the weekly chart is approaching oversold territory, suggesting that a short-term rebound could be possible. Trader sentiment remains divided as the market weighs these conflicting signals.

Historical Rebound Signals

According to market analyst Steph Is Crypto, XRP has historically demonstrated strong rallies after extended periods below the 50-week simple moving average. Past cycles in 2017, 2021, and 2024 saw XRP spend between 49 and 84 days below this average before rebounding, with gains ranging from 70% to 850%. Currently, XRP is within the same historical window, suggesting a potential for a significant upward move if the pattern repeats.

Institutional Interest and ETF Flows

Institutional interest in XRP continues to grow, with spot XRP ETFs reporting $19 million in net purchases. The first US-based spot XRP ETF launched over a month ago and has experienced consistent inflows since then. While the pace of inflows has slowed, the positive net activity streak remains unbroken. This sustained institutional interest could provide support for XRP, even as it navigates short-term technical challenges.

Path to Recovery

To regain short-term momentum, bulls need to push XRP above the recent high of $2.27, which was last reached in late November. Overcoming this level could signal a shift in sentiment and attract further buying interest. Conversely, if selling pressure continues, the next key support level to watch is around $1. Traders are closely monitoring these levels to assess the potential for further downside or a possible recovery.

XRP’s recent drop below the $2 support level has introduced uncertainty into the market. While technical patterns suggest potential downside risks, historical data and ongoing institutional interest offer some hope for a rebound. Traders should closely monitor price action around key levels to gauge the next direction for XRP.

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Source: Original article