Overview:

• On-chain weakness growing - XRP’s declining profit-to-loss ratio signals weakening holder confidence.

• Technical indicators turning bearish - RSI weakness and MACD divergence suggest further downside risk.

• $0.36 downside target emerges - Historical retracement patterns point to possible deeper correction if support fails.

XRP has entered a difficult phase as several market signals now point toward a weak long-term outlook. After months of mixed price action, fresh data now shows that the cryptocurrency may face deeper losses ahead. Analysts have started to focus on bearish indicators that suggest XRP could move much lower if current conditions continue.

One of the biggest concerns comes from on-chain data, especially the sharp drop in XRP’s profit-to-loss ratio. This metric helps track whether holders sell at profit or sell at loss. Right now, the number has moved lower, which shows fewer investors remain in profitable positions. In most cases, this type of trend reflects weaker confidence and often comes before larger market corrections.

Price Struggles After Recent Pullback

At the moment, XRP trades near the $1.19 to $1.20 range after a volatile week. On June 17, the token dropped sharply after sellers pushed the price below the important $1.23 breakout level. Earlier, XRP showed signs of recovery, but that move did not last long.

Market data revealed strong selling volume during this drop. This usually means traders used the small rally as a chance to exit positions instead of buying more. That reaction has created concern because it shows market participants remain cautious despite recent attempts at price recovery.

Technical Indicators Start Showing Weakness

Technical charts now support the bearish case for XRP. The Relative Strength Index, also known as RSI, sits near 46. This level does not signal oversold conditions, but it clearly shows momentum has weakened over recent sessions.

Another key signal comes from the MACD indicator, which now shows bearish divergence. In crypto markets, this pattern often appears before further downside movement. XRP now tests immediate support around $1.19, while the next major support zone sits close to $1.10. If buyers fail to defend these levels, market pressure could increase quickly.

Also Read - Is XRP Entering a Major Wave Cycle? What Happens Next Could Be Big

Leverage Risk Creates More Uncertainty

Another worrying signal has appeared in XRP derivatives markets. Recent exchange data shows Binance leverage ratios for XRP have reached the highest level seen so far in 2026. High leverage usually means traders have taken aggressive positions while expecting quick price moves.

At the same time, XRP withdrawals from Binance jumped above 53% of total exchange activity. Large withdrawal numbers combined with heavy leverage often create unstable conditions.

If the market moves lower, forced liquidations could hit traders who use borrowed positions. This type of liquidation event usually causes faster price drops and adds more fear across the market.

Long-Term Chart Structure Looks Weak

The bigger chart picture also raises concern. XRP has failed several times to stay above major resistance zones despite positive news around Ripple’s business progress and legal clarity.

Many investors expected stronger upside movement after recent developments surrounding Ripple’s payment network. However, price action has remained weak. Some analysts still believe XRP can eventually reach $3 to $5 in future market cycles, but short-term expectations have become much lower because demand remains soft. Without stronger buying pressure, XRP may continue to struggle in the coming months.

Why Analysts Mention the $0.36 Price Target

The possibility of XRP falling toward $0.36 comes from historical price analysis. In previous market cycles, XRP often entered long periods of sideways movement before deep corrections. Past retracements have crossed 70% after local highs.

If overall crypto market weakness continues and investor confidence keeps falling, XRP could revisit older accumulation zones. The $0.36 level stands out because it acted as a strong historical support area during previous cycles. This does not guarantee a move toward that level, but the risk has become part of serious market discussion.

Also Read - XRP Price Outlook: The 3-Phase Impulse Revealing the Next Move

Investor Sentiment Remains Fragile

Prediction market data now shows nearly 70% probability that XRP may fall below $1 sometime during 2026. This number reflects growing caution among traders despite recent optimism around ETF discussions and institutional interest.

Ripple as a company continues to expand its payment infrastructure, and its regulatory position has improved compared to previous years. However, one major issue remains clear.

Ripple’s business growth has not yet created enough direct demand for XRP itself. This gap between company success and token demand continues to worry long-term investors.

Unless XRP manages a strong move above the $1.30 resistance level, market conditions may stay bearish. Weak technical signals, falling profitability data, rising leverage risk, and fragile sentiment all suggest that XRP may face deeper downside pressure, with the $0.36 zone now viewed as an important long-term risk area.

FAQs

1. Why is XRP’s outlook turning bearish?

XRP’s outlook is turning bearish because on-chain metrics, weak price action, and bearish technical indicators all suggest declining investor confidence.

2. What does the profit-to-loss ratio indicate?

It measures whether investors are selling at a profit or loss; a decline often signals weakening market sentiment.

3. Why is $0.36 being discussed as a target?

Historical XRP price cycles show deep retracements of over 70%, making $0.36 an important past support zone.

4. How does leverage affect XRP price risk?

High leverage can trigger forced liquidations during price drops, accelerating downward volatility.

5. Can XRP still recover long-term?

Yes, but analysts say XRP needs stronger buying pressure and a breakout above key resistance around $1.30 first.