- XRP faces the risk of a 45% decline to $1.20 as a bearish descending triangle forms on its daily chart, signaling potential price drops.
- Declining network activity and struggles to maintain key support levels further contribute to the pessimistic outlook, though a breakout above $2.18 could invalidate the bearish trend.
XRP’s price is currently showing concerning technical patterns, suggesting a possible 45% drop in the coming weeks. Here’s why traders are worried, and what could trigger a rebound.
Bearish Descending Triangle Points to a Steep Drop
XRP’s daily chart is forming a bearish descending triangle, a classic pattern that typically signals a price reversal. After a solid rally in late 2024, the cryptocurrency has struggled to maintain upward momentum. The descending triangle features a flat support line and a downward-sloping resistance, indicating that a price breakdown is likely.
If XRP fails to maintain its current support levels, the price could plummet as much as 45%, potentially dipping to $1.20 by the end of May. This target aligns with previous analysis that warned of a decline to $1.61 if key support levels were breached. Traders are eyeing this pattern closely, and any move below the $2.06 mark could trigger further losses.
XRP Struggling to Stay Above Key Support Levels
XRP is currently hovering near the 50-day simple moving average (SMA) at $2.18, but the bulls are having difficulty keeping the price above this crucial support. If XRP continues to trade below the 50-day SMA and also breaches the 100-day SMA at $2.06, the downward pressure could intensify, sending the price toward $2.00, a psychological support level.
A breakdown below this level would open the door for the 45% decline to $1.20. If XRP breaks above the resistance at $2.18, it could invalidate the bearish outlook and push the price toward the $3.00 mark.
Declining Network Activity Adds to the Bearish Sentiment
XRP’s network activity has significantly decreased in recent weeks, with daily active addresses (DAAs) dropping from a peak of 608,000 in March to just around 30,000 in April and early May. This sharp decline in user engagement suggests waning interest in XRP and could be a precursor to further price stagnation or drops.
Decreasing transaction volume leads to reduced liquidity and buying pressure, factors that typically weigh heavily on an asset’s price. Although XRP has experienced a slight drop in price recently, the 30% increase in daily trading volume to $2 billion indicates a shift in market sentiment, with traders likely repositioning or taking profits.
The outlook for XRP remains uncertain, with the potential for significant losses if key support levels fail. However, a breakout above $2.18 could see a reversal in sentiment, offering a glimmer of hope for those holding the token.
As always, cryptocurrency markets remain volatile, and investors should exercise caution when making decisions.
ALSO READ:Analysts Hint XRP Rally to $30 in 2025- Visionary or Crazy?
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