According to Cointelegraph, XRP's price is currently under pressure, with the cryptocurrency trading at $2.80 after a 5% decline over the past 24 hours. The failure to maintain a position above $3 has raised concerns about the sustainability of its recent upward trend. The daily candle chart reveals a descending triangle formation, a bearish continuation pattern characterized by a downward-sloping resistance trendline and a flat horizontal support line. A daily close below the triangle's support trendline could initiate a new wave of selling, with a technical target near $2.07, representing a potential 26% drop from the current price.
XRP is trading below its 50-day and 100-day simple moving averages, reinforcing a bearish outlook. The 200-day SMA at $2.52 might offer some support to bulls, potentially preventing a deeper decline toward $2. The relative strength index has decreased from 50 to 39, indicating growing downward momentum. Additionally, XRP's Net Unrealized Profit/Loss (NUPL) is within the 0.5–0.6 range, historically associated with local tops, suggesting increased sell-side pressure. With over 94% of supply in profit at current prices, there is a risk of heightened selling activity, similar to past corrections in 2017, 2021, and January 2025.
Despite the recent pullback, some analysts maintain a bullish outlook for XRP on higher time frames. As reported by Cointelegraph, the weekly candle chart remains optimistic, featuring a bull flag pattern since the November 2024 rally, indicating potential price increases up to $15. Crypto analyst CryptoBull anticipates a rally to $5 in October, while Egrag Crypto suggests the ongoing pullback might be a technical correction. He highlights an ascending triangle formation on the monthly chart with a price target of $27. XForceGlobal's earlier analysis supports a bullish macro outlook, with Elliott Wave analysis predicting a cycle top above $20 for XRP. Readers are reminded that this article does not offer investment advice, and all trading decisions should be made based on individual research and risk assessment.
