XRP has seen a significant price drop of over 35% since it reached a multi-year high of $3.40 in January. As various market indicators suggest further declines, including the emergence of a bearish inverse cup and handle pattern, it is crucial for investors to analyze the potential implications for XRP’s future.
XRP’s Technical Breakdown
The recent price movements of XRP indicate the presence of an inverse cup and handle formation—a bearish reversal signal hinting at declining buyer momentum following an uptrend. This pattern is characterized by the cup, which signifies a rounded decline, and the handle, which forms after a consolidation period. If XRP breaks below the solid support established by the handle, there is high potential for a significant dip.
XRP’s rounded “cup” formation peaked around March 19 and finalized its decline by the end of the month. Presently, the horizontal price range between $2.05 and $2.20 forms the critical handle. A breakdown below this console can lead to price projections as low as $1.58, suggesting a decline upward of 25% in the month of April.
Adding to the bearish sentiments, the volume profile visible range (VPVR) indicator indicates high trading activity around $2.10-$2.20—an essential support level. A breach below this area could trigger heightened sell pressure, as minimal historical support exists below this volume range.
Alternatively, if XRP closes strongly above the $2.14 EMA, it could invalidate the bearish pattern, signaling a potential rally towards $2.28, shifting momentum back to buyers.
Whale Activity and Market Sentiment
Recent data from CryptoQuant indicates prolonged net outflows from XRP’s largest holders, suggesting a lack of confidence among institutional investors. During the price peak in Q4 2024, significant whale selling indicated distribution into strength, a trend that has continued into 2025, as whale flows remain negative.
This ongoing divergence between a declining whale seizure and the asset’s falling price could lead to lower near-term stability for XRP unless accumulation resumes.
Moreover, macroeconomic factors such as global tariffs imposed by the US and a hawkish Federal Reserve response add further to the pressure on XRP and the wider cryptocurrency market.
This article does not constitute investment advice. All trading and investment actions involve inherent risks, and individuals should conduct thorough research before making decisions.
