XRP Price Under Pressure — Losing Support May Trigger a 30% Drop
Key Takeaways
- XRP risks breaking down from a head and shoulders pattern.
- The XRP price deviated above the $2.75 horizontal resistance.
- Is XRP’s rally over, or will the price reach new highs in 2025?
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XRP had an eventful week, with positive news driving volatility. The cryptocurrency was one of the five assets in Donald Trump’s U.S. crypto reserve proposal.
Then, Ripple CEO Brad Garlinghouse was one of the most prominent attendees of the first-ever White House crypto summit.
However, despite these developments, the XRP price has struggled to maintain momentum. The price now risks breaking down from a long-term bearish pattern.
Will this happen, decisively lowering the XRP price below $2, or does XRP have enough strength to prevent yet another breakdown? Let’s find out.
Why is XRP Dropping?
The daily time frame chart shows that the XRP trend has slowed significantly since its parabolic increase in November 2024. Initially creating higher highs and lows, the trend shifted in 2025.
In March, the XRP price created its first lower high, completing what could be the right shoulder in a head and shoulders pattern. The H&S is considered a bearish pattern, often leading to breakdowns.
The XRP price trades below its neckline of $2.30, risking a breakdown and plunge.
While the 0.618 Fibonacci retracement support level is at $0.90, a breakdown that travels the entire pattern’s height would take the price much lower, leading it to the 0.85 Fibonacci retracement at $0.90.
Technical indicators are also bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The RSI is below 50, while the MACD is negative, indicating a bearish trend.
The wave count gives more confluence to the 0.618 Fibonacci retracement resistance. The count shows an ongoing A-B-C correction, where XRP is in wave C.
Giving waves A and C the same length leads to a low of $0.140, slightly above the 0.618 Fibonacci retracement.
As a result, the daily chart gives a bearish XRP prediction, predicting a breakdown from the H&S pattern. While the XRP price moved below the pattern’s neckline, it still trades inside the $2.05 horizontal support area.
A breakdown below it could accelerate the downward movement.
Long-Term XRP Trend
The weekly chart reiterates the importance of the $1.40-$1.60 support area. The time frame coincides with the 2021 high, a previous resistance level that is now likely to provide support.
However, the long-term outlook suggests that the drop in this area might now mark the end of the correction. There are several reasons for this.
Firstly, the XRP price deviated above the all-time high resistance of $2.75. The high was close to the resistance trend line of an ascending parallel channel, which suggests the entire increase may have been corrective.
Secondly, the RSI made a bearish divergence and is now below 70. Previously, such a divergence (orange) marked the 2021 high and led to a lengthy correction.
In addition to the bearish RSI reading, the MACD generated a bearish divergence and has now made a bearish cross.
So, the weekly and daily time frames align in their bearish predictions, suggesting a drop to the $1.40$1.60 area is likely.
The weekly time frame indicates that the XRP price may have reached its cycle high.
More Downside in 2025
The XRP price risks breaking down from its four-month head and shoulders pattern. If that happens, the next support will be $1.40-$1.60.
The long-term outlook is also bearish, giving warning signs that the cycle may be over.
XRP Price Closes February With a 35% Correction — Recovery Looks Unlikely
XRP Price Prediction 2025: Ripple Back in Top Three, New All-time High on the Way?
