XRP price has dropped more than 35% since reaching a multi-year high of
$3.40 in January — and the downtrend could deepen in April as new bearish
signals emerge.
XRP is nearing a classic technical breakdown
XRP's price recently showed signs of a bearish reversal with an "inverted
cup and handle" pattern — a technical formation indicating weakening bullish
momentum. This pattern resembles an upside-down teacup, where the "cup"
represents a rounded decline, and the "handle" is a brief accumulation phase
before the price continues to drop.
If the price breaks below the support level of the "handle," the pattern
will be confirmed, and the price could drop significantly, equivalent to the
height of the "cup." For XRP, the "cup" peaked on March 19 and completed by
the end of the month, while the "handle" is currently forming within the
price range of $2.05 to $2.20.
If XRP breaks below the current sideways price range, the inverted cup and
handle pattern will be confirmed, potentially pushing the price down to the
support level of $1.58 — a drop of over 25% in April.
The VPVR indicator shows that the $2.10–$2.20 range is a strong support
zone due to high trading volume. If XRP breaks below this level, the risk of
a sharp decline will increase, as lower levels have low volume and little
historical price support.
On the other hand, if XRP closes strongly above the 50-period 4-hour EMA
near $2.14, the bearish pattern could be invalidated. In that case, the
bulls could regain control and push the price up to the resistance zone
around $2.28 (200-period EMA).
Whale flows suggest greater selling pressure for XRP
As of April 5, data from CryptoQuant shows that XRP whales have been
consistently net selling since late 2024, even when prices surged in
Q4/2024. This indicates that large investors are losing confidence and
selling at local peaks. The selling trend has continued into 2025, raising
concerns about short-term price stability unless a new accumulation phase
occurs.
Additionally, President Trump’s tax policies and the Fed’s tough stance are
reducing risk appetite, which could put further pressure on XRP and the
entire crypto market in the near future.
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