Key Insights:
- XRP’s chart indicates a potential drop to $0.88 due to a megaphone pattern.
- Increasing selling pressure has led many XRP holders to liquidate their assets at a loss.
Currently, XRP is down 3% in the last 24 hours, trading at approximately $1.93. The inability to maintain a value above $2 raises concerns regarding the altcoin’s recovery potential. Traders are keenly observing how far XRP might decline.
XRP/USD one-hour chart. Source: Cointelegraph
XRP Patterns Indicate Target of $0.88
The recent XRP/USD trading activity has formed a megaphone pattern on the weekly chart, suggesting a significant correction may occur. This pattern emerges when prices create alternating higher and lower peaks. According to technical analysis, breaching the lower boundary could lead to a steep decline.
Related: ETF altseason? Solana, XRP funds buck crypto’s market sell-off
The validation of this pattern hinges on the price breaking above the lower trend line registered around $1.80. The expected target for this pattern lies at $0.88, representing a 54% increase relative to the current pricing.
Watch Key Price Levels
Before reaching this anticipated target, it’s essential to monitor the 100-week simple moving average (SMA) at $1.60 and the 200-week SMA at $1.05. The weekly Relative Strength Index (RSI) has dropped to 39, indicating a marked downturn from previous levels of 91 observed in December 2024.
As more than 41.5% of XRP holders are currently at a loss, a rise in selling pressure could occur as these investors realize their losses. Historical trends in 2018 and 2021 have demonstrated that similar conditions have often bordered sharp market corrections.
Realized Losses on XRP Reach Peak Levels
XRP has experienced a significant drop, hitting an intraday low of $1.81—the lowest since April, per data from Cointelegraph Markets Pro and TradingView.
The increasing sales pressure is evoking memories of previous substantial market declines. Glassnode noted that realized losses are at their highest since April, with the 30D-EMA of daily realized losses reaching approximately $75M per day.
Glassnode remarked just before XRP dipped below $2, marking a 50% reduction from its peak price of $3.66 seen in mid-July. Lack of on-chain demand and continued profit-taking by whales could exacerbate XRP’s vulnerability to selling pressure.
This article is not intended as financial advice. Every investment carries risk, and it is advised readers conduct their own due diligence.
