XRP failed to gain enough momentum to achieve a breakout, as bears immediately pushed the price down.
XRP's market performance has just produced what could be one of the biggest false breakouts of 2025. After seemingly bullishly breaking through key moving averages, the asset subsequently retraced, erasing the previous day's gains and casting a shadow over recent market sentiment.
XRP broke through the 50-day and 100-day EMA on June 16, closing around $2.27, which filled traders with hope for a long-term rise and potentially targeting resistance levels between $2.40 and $2.50. A brief surge in trading volume and RSI momentum trending into the bullish zone supported this trend. But within 24 hours, everything collapsed. Today’s reversal invalidated the breakout attempt, with the price falling back to $2.23, showing signs of a pullback at both the 50-day and 100-day EMA.
From a technical perspective, this indicates that buyers are hesitant and confused, which is a typical sign of a failed breakout. If the breakout momentum strengthens further, the 200-day moving average (EMA) is located at $2.09, a position that has been tested three times in June and is likely to be the next support level. Why is this important? A failed breakout is not just a bearish candlestick—it destroys the bullish structure. Traders who entered during the breakout are now either at a loss or caught in panic selling, and the lack of follow-through action undermines confidence in bullish momentum.
This pattern also carries the risk of forming a double top. If the price breaks through $2.09, it will further intensify bearish signals. Trading volume has decreased since yesterday's candlestick chart, indicating that bulls lack confidence in holding the support level. Meanwhile, the RSI indicator has moved down from the neutral zone, suggesting a potential new round of declines in the future.
Summary: This is not just a minor issue but a dangerous signal. Before XRP rebounds and firmly establishes itself above $2.27 on volume and broader market support, you should expect unstable fluctuations in the market and even larger pullbacks. Traders should proceed with caution, as this false breakout may trigger a more severe pullback than anticipated.
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