Ripple’s XRP has developed a traditional head-and-shoulders pattern, signaling a potential bearish trend with critical support at $2.05. A confirmed breakdown below this level could accelerate depreciation, dragging XRP toward the $1.30-$1.20 region, which previously acted as a turning point.
Despite this bearish setup, XRP could momentarily delay the breakdown if it maintains support above $2.05. In this scenario, short-lived upward movements between $2.40 and $2.60 could precede a continued descent. However, a decisive price move above $3 would invalidate the head-and-shoulders structure, potentially shifting market sentiment to bullish. Resistance levels at $3.40 and $3.60 could then serve as key testing points before further price increases occur.
Long Liquidations and Profit-Taking Surge
Bearish sentiment is further reinforced by increasing long liquidations, with cumulative long liquidation leverage value reaching $46.4 million at the $2.20 mark. This suggests that forced liquidations among long traders are escalating, adding to the selling pressure.
Meanwhile, leveraged short positions continue to rise, indicating growing negative sentiment and increasing the likelihood of a sustained downtrend. XRP’s struggle to hold above $2.245 signals potential risk, as a failure to maintain support could trigger liquidations and push the price to $2.10 or lower.
Additionally, stablecoin reserves across exchanges reached $32.8 billion within 24 hours, highlighting increased market participants selling for profits. Crypto analyst Ali noted that strong selling pressure could drive XRP below $2.05, leading to a deeper price drop toward the $1.30-$1.20 range.
Stablecoin reserves across all exchanges surged from $32.1 billion to $32.8 billion in just 24 hours, signaling increased profit-taking activity in the market. pic.twitter.com/fKfd0P5CPx
— Ali (@ali_charts) March 28, 2025
Can Sentiment Flip XRP’s Bearish Outlook?
Despite these warning signs, XRP’s crowd sentiment stood at 0.81, while smart money sentiment reached 1.21, suggesting a preference for an ascending price movement. However, history suggests that smart money often manipulates market conditions before major price swings.
Also Read: XRP Price Surge: Can It Hit New Highs by May or June? Analysts Weigh In
If XRP fails to break through resistance, liquidity sweeps could push prices lower until experienced traders exit before market expansion begins. While optimism lingers, the liquidation risks pose a significant threat, making further price drops a likely scenario in the coming sessions.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
