The price of XRP has continued to fall. It dropped 3% in a single day, bringing its price to $1.93. This failure to stay above the $2 level has raised concerns about its potential for recovery. Traders are now questioning how much lower the price could go.
A significant pattern has appeared on the weekly price chart for XRP. It is called a megaphone pattern, which is also known as a broadening wedge. This pattern forms when an asset’s price makes both higher highs and lower lows. According to technical analysis rules, if the price breaks below the pattern’s lower boundary, it can lead to a sharp decline.
For XRP, this pattern would be confirmed if the price falls below the lower trend line near $1.80. If that happens, the pattern suggests a potential price target of $0.88. This would represent a 54% drop from the current price level. Before reaching that point, key support levels to watch are $1.60 and $1.05.
Another indicator, the Relative Strength Index (RSI), also shows weakening momentum. The weekly RSI has fallen to 39. This is a significant drop from an extremely overbought reading of 91 in December 2024. This steady decline indicates that selling pressure has been increasing.
On-chain data reveals that investor sentiment is shifting. A metric called Net Unrealized Profit/Loss (NUPL) shows that the market mood has moved from euphoria to anxiety. This suggests that investors who bought at higher prices are now becoming nervous as the price falls.
Data shows that XRP recently hit an intraday low of $1.81, a price not seen since April. The amount of money being lost by sellers has also surged. The 30-day average of daily realized losses has spiked to around $75 million. This is the highest level of losses in seven months.
This drop marks a 50% decline from XRP’s multi-year high of $3.66, which was recorded in mid-July. Analysts point to a lack of new demand on the blockchain and ongoing profit-taking by large holders, known as whales, as factors that could worsen the sell-off.
