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XRP has faced another decline, with bearish signals from technical patterns.
The Head and Shoulders pattern suggests a potential price correction if support levels fail.
Watch $2.08 support and $2.55 resistance for key breakout or breakdown points.
Ripple (XRP) has faced another price setback, currently trading at $2.16, down 2.77% over the past 24 hours. The latest price drop comes after XRP had previously struggled to break key resistance levels.
This ongoing decline raises the important question: Is a more significant price correction ahead for XRP?
The primary driver of uncertainty surrounding XRP remains its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). While Ripple continues to defend its position, the uncertainty regarding whether XRP is classified as a security has caused market jitters. Recent legal filings have further complicated the case, contributing to increased caution in the market.
Compounding this uncertainty, XRP-focused investment funds have seen notable outflows, according to the CoinShares Digital Assets Fund Flows Report, with $28 million withdrawn last week.
This trend highlights a shift in sentiment, with investors becoming increasingly wary of XRP, leading to downward pressure on its price.
Also Read: XRP Sinking in 2025: Why Its Top Catalyst Isn’t Enough
Looking at XRP’s price action, we see a Head and Shoulders pattern forming. This pattern is a classic bearish reversal signal, suggesting that XRP might be headed for a more significant decline if the price breaks critical support levels.
Left Shoulder: XRP surged to around $2.55 in late March before pulling back.
Head: In May, XRP tested $2.80 but failed to sustain the rally.
Right Shoulder: Currently, XRP is forming the right shoulder, and the price has begun to break lower, approaching $2.20, which is the neckline of the pattern. A confirmed break below $2.20 could lead to further downside, with a target of $1.80.
This pattern, combined with decreasing volume during the formation of the right shoulder, suggests that the upward momentum is weakening, and a more severe correction may be in store for XRP.
The Relative Strength Index (RSI) is currently reading 44.51, indicating that XRP is in a neutral-to-bearish phase, with more room to drop before reaching oversold conditions.
Additionally, XRP is forming a symmetrical triangle, with price action squeezing between $2.55 and $2.08. The price has been consolidating within this range for the past few weeks, signaling that a breakout or breakdown is imminent.
XRP breaks below the $2.08 support, which could signal a significant decline, potentially toward $1.70 or even lower.
Conversely, a breakout above $2.55 would invalidate the bearish signals and could lead XRP toward $2.80 - $3.00.
Given the formation of the Head and Shoulders pattern and the symmetrical triangle, XRP is at a make-or-break point. A breakdown below the support level could lead to a larger price correction, while a break above $2.55 could trigger a rally.
Also Read: Ripple XRP Rally to $21? Forecast Suggests 800% Jump if SEC Case Resolved
The formation of a Head and Shoulders pattern combined with the symmetrical triangle pattern suggests that XRP could face a larger correction in the coming weeks. The $2.08 support level is critical.
However, if XRP manages to hold above $2.08 and break through $2.55, it could invalidate the bearish patterns and initiate a potential rally.
XRP is currently navigating a crucial phase, and whether a bigger price correction is on the horizon depends on its ability to hold support levels and break through resistance. The Head and Shoulders pattern and symmetrical triangle indicate that XRP is at a critical juncture.
For traders, it’s essential to closely monitor the $2.08 support level. If it holds, XRP may attempt to break the $2.55 resistance. However, if $2.08 is breached, XRP could face a significant price correction, potentially dropping to $1.75 or even lower. Volume, RSI, and legal developments will be key factors in determining XRP’s next major move.
