$XRP price risks a 20% crash to $1.70 — Here is why
XRP forms an inverted V-shaped correction pattern on the daily chart, risking a 20% drop to $1.70.
A bearish divergence from the weekly RSI points to increasing downward momentum.
Declining daily active and new addresses signal reduced transaction activity and less demand for XRP.
XRP price traded 18% below its May peak of $2.65, and a convergence of several data points signals a possible drop toward $1.70.
XRP price action between April 7 and June 2 has led to the appearance of an inverted V-shaped pattern on the daily chart.
This follows an initial climb that saw XRP price surge 62% from a low of $1.61 in a sharp recovery stopped by buyer congestion at the $2.65 resistance level.
Bears booked profits on this rally, resulting in a sharp correction to the current levels. The relative strength index (RSI) was facing down and dropped from 68 to 41 since May 12, indicating increasing downward momentum.
As the price seeks to complete the inverted V-shaped pattern, it could drop further toward the pattern’s neckline around the $1.72 demand zone, representing a 20% price drop from the current price.
Similar sentiments were shared by an analyst on TradingView, MasterAnanda, who said that reducing bullish momentum, coupled with rejection from key support areas, threatens XRP’s drop to sub-$2.00 levels.
His latest XRP analysis shows XRP has broken below a rising channel, with three consecutive daily closes below the lower trendline.
New addresses have also dropped from a 2025 high of 15,800 daily to the current 4,400, suggesting declining network adoption and user engagement.
Declines in network activity typically signal upcoming price stagnation or drops, as lower transaction volume reduces liquidity and buying momentum.
