XRP Price Plummets: How Low Can It Go After Falling Under $2?
XRP (XRP) has continued its downward trend, falling 3% to $1.93 in the last 24 hours. The inability to hold above $2 has raised concerns about the altcoin’s recovery possibilities, leaving traders wondering how far it can fall. The XRP/USD pair has formed a megaphone pattern on the weekly time frame, suggesting a deeper correction.
The Classic XRP Pattern Targets $0.88
A megaphone pattern, also known as a widening wedge, occurs when price creates a series of higher highs and lower lows. As a technical rule, a breakout below the lower boundary of the pattern can trigger a sharp decline. In the case of XRP, the pattern will be confirmed once the price breaks above the lower trendline around $1.80. The measured target for this pattern is $0.88, or a 54% increase from current levels.
The key levels to watch before reaching this target are the 100-week SMA (Simple Moving Average) at $1.60 and the 200-week SMA at $1.05. The weekly RSI fell to 39 on Friday, below the extremely overbought level of 91 in December 2024, indicating steadily increasing bearish momentum over this period.
XRP’s Net Unrealized Gain/Loss (NUPL) and Its Impact on Price
Meanwhile, XRP’s Net Unrealized Gain/Loss (NUPL) has gone from euphoria to denial, and now fear is spreading. With more than 41.5% of XRP holders underwater at current prices, there is a likelihood of increased selling pressure as investors factor in their losses. Such setups in 2018 and 2021 preceded sharp corrections, raising the possibility of similar pullbacks in the coming weeks.
XRP Realized Losses Rise to a Seven-Month High
According to data from Cointelegraph Markets Pro and TradingView, XRP fell to an intraday low of $1.81, a level last seen in April. Increasing selling pressure has caused many investors to sell at a loss, reminiscent of major historical market crashes. According to blockchain data platform Glassnode, realized losses on XRP have risen to levels not seen since April.
As Cointelegraph reported, a lack of on-chain demand and continued profit-taking by whales could increase XRP’s sell-off risks. For more information, visit https://cointelegraph.com/news/how-low-can-xrp-price-go-after-falling-under-dollar2?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
