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Warning Signs for XRP as Price Shows Risk of Pullback Before Next Rally

XRP has surged over 50% in the past month, climbing from $1.80 to $2.47, driven by renewed investor interest and expectations of an impending altseason. However, technical indicators now suggest that this rally may be losing momentum, and a short-term correction could be on the horizon.

Bearish Patterns Signal Near-Term Trouble

XRP’s price action has formed a double top pattern near $2.65, with a neckline at $2.47. The drop below this neckline confirms a potential bearish reversal, signaling a likely move toward $2.30.

XRP / USD PRICE CHART FOR 4 HOURS PERIOD
XRP/USD four-hour price chart. Source: TradingView

Adding to the concern is a rising wedge breakdown, typically a bearish signal that could drive XRP down by another 20% to around $1.94. This level is significant because it overlaps with a highly leveraged long position zone, where a breakdown could trigger forced liquidations and intensify the sell-off.

XRP/USD four-hour price chart. Source: TradingView

On-Chain Metrics Echo Warning Signs

XRP’s Net Unrealized Profit/Loss (NUPL) metric has entered the Belief–Denial zone, a phase that has historically preceded sharp declines. This suggests that while many traders still anticipate further gains, the actual momentum may be fading — a potential red flag echoed in past market cycles.

XRP NUPL 30-day average vs. price chart. Source: Glassnode

Long-Term Projections Still Favor Bulls

Despite the short-term risks, XRP’s long-term charts remain bullish. A breakout from a multi-month falling wedge could fuel a rally toward $3.69 by June, provided it holds above key moving averages.

XRP/USD three-day price chart. Source: TradingView

Broader projections even point to targets of $5.24 and $17, based on symmetrical triangle formations and Fibonacci extension levels.

In conclusion, while XRP’s short-term outlook appears shaky due to bearish technical patterns and sentiment metrics, the broader trend continues to favor upside potential. Traders may see a temporary pullback, but the long-term bull case remains intact — at least for now.

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