XRP Breakdown: Bear Flag and Death Cross Signal Drop Toward $1.65

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• XRP retraced over 9% after Swell hype failed to sustain.
  
• Technicals indicate a bear flag and potential retest near $1.65–$1.70.
  
• Historical patterns show Swell rallies often fade quickly.

XRP ($2.16) has taken a sharp downturn in the hours following Ripple’s flagship Swell conference. After briefly rallying near $2.40 on November 5, the altcoin has retraced more than 9%, signaling that investor enthusiasm from the event was short-lived.

Ripple unveiled a $500 million funding round led by Citadel Securities and Fortress Investment Group, showcased new integrations for its RLUSD stablecoin, and hinted at a decentralized lending protocol on the XRP Ledger (XRPL). Despite these developments, the market response was muted, reflecting a familiar “buy the rumor, sell the news” pattern that has followed Swell events for years.

Technical Setups Point to Further Declines

XRP’s charts reveal a bear flag formation after the token’s sharp drop from around $3.60 in early September. The recent breakdown below the flag’s lower boundary, combined with a looming death cross—where the 50-period EMA dips below the 200-period EMA—suggests sellers are regaining control. Analysts now eye the $1.65–$1.70 range as a potential target, aligning with both April support levels and the token’s aggregated realized price from Glassnode data.

This support zone represents the average cost basis across XRP wallets, often acting as a floor where long-term holders accumulate, potentially limiting further downside pressure.

Also Read: XRP Price Drops 11% as XRPL Wallet Growth and Liquidity Hit 9-Month High

Market Sentiment Remains Cautious

Broader market trends have compounded XRP’s weakness. Bitcoin’s temporary drop below $100,000 amid equity market turbulence and tightening US liquidity has dampened sentiment across altcoins. Historically, XRP has posted negative returns between Swell events and year-end in four of the past five years, reinforcing a pattern of hype fading faster than headlines suggest.

While Ripple continues to innovate and attract institutional backing, XRP traders should approach the market with caution. Technical setups, historical patterns, and macro conditions point to a possible retest of key support near $1.65–$1.70 before the token can stabilize or attempt another rally.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.