XRP Signals Bearish Trends as Price Hovers Around $2

XRP is trading near the $2 mark after experiencing various price pressures and mixed technical indicators. In the past 24 hours, the coin saw a slight decline of over 1%, marking a total 4% drop for the week. Recently, it reached a low of $1.95 but has managed a slight recovery, currently establishing a short-term support range between $1.95 and $2.05.

Recurring Bearish Trends

Market analyst Steph Is Crypto shared a repetitive pattern visible on XRP’s 3-day chart. The analysis suggests that whenever the EMA ribbon flips to a bearish position and the price remains underneath it, the asset tends to enter a prolonged decline phase. Historical data shows that previous downturns have fluctuated between 27% and 66%, often persisting for several months.

XRP Price Chart
Source: Steph Is Crypto/X

XRP has once more fallen below the EMA ribbon, indicating the same bearish setup. If this pattern is consistent, XRP could face further prolonged declines.

“So far, this signal has no exceptions,” the analyst stated.

CRYPTOWZRD has also commented on XRP’s daily chart, noting a slight bearish candle closure. The weekly chart remains inconclusive, with the $2.1 level now serving as a short-term resistance. A decisive breakthrough here could change momentum, while failure to penetrate this level might lead to increased selling activity.

Looking at the intraday chart, XRP indicates signs of a pullback following recent fluctuations. A move to $2.1 coupled with weakness could prompt short arrangements. Conversely, if the rate maintains above this threshold, a more bullish trajectory might commence.

Continued Range Structure

ChartNerd posted that XRP remains within a 13-month trading boundary, currently positioned near the lower limit without any breakdown. The overall market structure stays unchanged as long as XRP trades within this range, indicating an extended sideways movement without a solid directional commitment.

Meanwhile, Ali Martinez pointed out a buy signal on XRP but cautioned,

“Everything hinges on $1.90. Hold it, and $2.50 comes into play.”

Activity from Whales as ETF Demand Rises

As reported by CryptoPotato, data revealed that trading from large accounts has surged, even as XRP hovers near its yearly lows. There appears to be a change in demand dynamics, often seen during market bottoms.

Additionally, U.S. ETFs for XRP have garnered consistent attention, showcasing 30 days of net inflows since their launch on November 13. Reports indicate total net assets around $1.18 billion, with approximately $991 million in net contributions. This trend continues even as other crypto ETFs experience outflows.