Is $XRP ’s Rally Losing Steam? Short-Term Risks Emerge
XRP Faces Resistance After Strong Rebound
XRP has surged over 50% in the past month, bouncing from $1.80 to a recent high near $2.65. Optimism around a potential "altseason" has driven much of the rally. However, technical patterns now suggest that the momentum may be fading — at least for the short term.
Bearish Patterns Signal Caution
XRP has formed a double top pattern around $2.65 with a neckline at $2.47. After failing to break the previous high, the price slipped below the neckline, confirming the reversal setup. This suggests a potential drop to $2.30 if the bearish structure holds.
In addition, a rising wedge breakdown points to further downside. XRP is currently testing support near its 50-period 4H EMA. If it breaks below this level, the price could fall another 20%, targeting $1.94. This zone is significant, as it holds nearly $50 million in leveraged long positions — risking a long squeeze if support fails.
On-Chain Signals Reflect Market Denial
The Net Unrealized Profit/Loss (NUPL) indicator has entered the Belief–Denial phase, where traders hold on to bullish expectations despite weakening momentum. Historically, this phase has preceded significant corrections, as seen in 2018 and 2021.
Long-Term Outlook Still Bullish
Despite short-term headwinds, XRP’s larger trend remains promising. If a multimonth falling wedge breakout holds, XRP could rally 45% to $3.69 by June. Some projections even point to $5.24 or $17 based on symmetrical triangle and Fibonacci patterns.
Conclusion
XRP’s current rally may pause or pull back before another leg higher. Technical and on-chain data suggest short-term caution, but the broader bullish trend remains intact. Traders should watch key support levels and patterns closely in the days ahead.
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