The cryptocurrency market is buzzing about XRP price loss. Technical patterns suggest it could fall further. There’s talk of a possible bearish reversal for XRP.
XRP, the cryptocurrency often hailed for its potential to transform cross-border payments, has recently exhibited a bearish divergence pattern. This technical setup is similar to what happened in 2018, when XRP dropped by 80%. It suggests the price could reach as low as $2.28. Let’s look closer at what this could mean for XRP in the next few weeks.
January Surge Ends? Bearish Indicators Spell Caution for XRP
XRP has had a strong start to 2025, rising almost 50% in January. On January 18 it reached $3.39, its highest point in almost seven years. However, the rally may be losing momentum. Bearish signals suggest a possible price drop for XRP.
One of the key warning signs comes from a bearish divergence between XRP’s price and its Relative Strength Index (RSI). While XRP’s price has climbed to multi-year highs, the RSI has been trending downward, forming a descending pattern. This divergence shows XRP’s upward trend is slowing. The chance of a price reversal is higher in the next few days or weeks.
Historical Patterns Hint at Possible XRP Price Drop
XRP’s price is much higher than its 50-day moving average (EMA), which is a bearish sign. On January 18, the 50-day EMA was around $2.28, about 25% lower than the current price of $3.07. In the past, when prices rise too fast, they often drop back to the EMA as traders take profits and the market calms down.
XRP Price Loss: In 2018, XRP’s price dropped 80% after a bearish signal appeared. The current setup is very similar to that time. This suggests history might repeat itself with another big price drop for XRP.
XRP Price Loss: Will XRP Hold the $2.28 Support Level?
The $2.28 level is important for XRP because it’s both a support zone and the 50-day EMA. It’s also a key psychological level for traders. If the price falls below $2.28, it could lead to more selling and a bigger price drop. However, if the price stays above $2.28, it could help start a new rise.
Broader Crypto Market Hints at Potential Corrections: XRP Price Loss
The potential XRP price loss isn’t happening alone. The whole cryptocurrency market has mixed signals. Bitcoin and Ethereum have had strong rallies too. However, RSI divergences and overbought conditions suggest a pullback may happen for several assets.
XRP Price Loss: Macroeconomic factors, like tighter monetary policies and more regulation, could affect investor sentiment. This might make an XRP price drop more likely. Traders should stay alert and keep these factors in mind when making decisions.
Long-Term Outlook for XRP Price
Spot ETF Approval and Market Sentiment
Despite short-term bearish signs XRP’s long-term outlook is positive. Analysts think that approving spot XRP ETFs in the U.S. could bring a lot of money into the market. JP Morgan predicts these funds could attract $4 billion to $8 billion, which could push XRP’s price higher.
Downside Risks Beyond $2.28
XRP Price Loss: If XRP’s price drops below the $2.28 support it could keep falling. If it breaks the lower trendline at $1.90, the trend could turn clearly bearish. This might lead to a bigger drop possibly reaching the 200-day EMA around $1.35. Such a move would show a large pullback from recent highs, making it important to watch these key levels.
In conclusion, XRP’s recent rise has been met with caution as bearish signals suggest a possible price drop. Technical indicators point to a drop to the key $2.28 support level, which matches the 50-day EMA. If XRP can’t hold this level, it might fall further to $1.90 or $1.35. However, the long-term outlook for XRP is still positive, especially if spot XRP ETFs are approved. Traders should watch market trends and key levels to manage risks and opportunities.
Also Read: HEDRA Crypto Price Breakout Alert: Is a 100x Rally by 2025 Within Reach?
