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- XRP has fallen below the $2 support zone, with technical charts pointing to potential deeper losses.
- A megaphone pattern suggests a downside target near $0.88 if current support breaks.
- Rising realized losses and weak on-chain sentiment are amplifying sell-side pressure.
XRP’s sharp decline extended into Friday as the token slipped to $1.93, losing another 3% in 24 hours and raising concerns that the ongoing downtrend may accelerate. With momentum weakening and trader sentiment turning cautious, the altcoin’s failure to reclaim the key $2 support zone has sparked renewed debate about how far the correction could stretch.
Megaphone Pattern Signals Potential for a Larger Pullback
On the weekly chart, XRP is exhibiting a broadening formation—often referred to as a megaphone pattern—that typically reflects heightened volatility and expanding price swings. This pattern emerges when an asset prints higher high-s and lower lows over time, creating a widening structure that often precedes decisive moves.
Analysts note that a confirmed breakdown below the pattern’s lower boundary near $1.80 may open the door to a sharper retracement. The accompanying measured target sits near $0.88, aligning with a potential 50%+ slide from current levels. Before reaching that zone, traders are closely watching the 100-week SMA at $1.60 and 200-week SMA around $1.05 as major support checkpoints.
Momentum Weakens as RSI and Sentiment Indicators Shift
Technical indicators are reinforcing bearish pressure. XRP’s weekly RSI has fallen to 39, a dramatic cooldown from the exuberant 91 reading seen late last year. This downdraft mirrors shifting on-chain sentiment, with the token’s NUPL metric transitioning from euphoria to anxiety as unrealized profits evaporate across the holder base.
More than 41% of XRP holders are now underwater, a dynamic that historically increases sell-side stress—similar patterns in 2018 and 2021 preceded significant declines.
Realized Losses Surge as Holders Capitulate
Additional on-chain data shows that realized losses have spiked to levels unseen since April, with the 30-day EMA of realized losses reaching approximately $75 million per day. The rise in capitulation-style selling follows XRP dropping to an intraday low of $1.81, marking a deep 50% retracement from its multi-year peak of $3.66 in July.
While long-term holders remain active, persistent whale distribution and fading demand could continue to pressure XRP unless the broader crypto market stabilizes.
Also Read: Is XRP Coming to EZPZ? Franklin Templeton Launches XRPZ ETF Amid Growing Spot XRP Demand
With multiple technical and on-chain signals aligning, XRP’s path forward may remain turbulent unless it quickly regains key support levels. For now, traders are bracing for increased volatility and the possibility of a deeper correction.
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 your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
