XRP Faces 40% Drop Risk as Bearish Momentum Intensifies

Ripple's XRP has been a topic of concern among investors, with the cryptocurrency's price hovering just above $2.10 and facing potential declines due to global market uncertainties. The upcoming Liberation Day tariff plans have added to the volatility, causing some investors to seek alternative options. One such alternative gaining traction is Remittix ($RTX), a new PayFi project that has attracted significant presale funding.

Analysts warn that if XRP falls below the $2.00 mark, it could experience a steep drop, potentially reaching as low as $0.62. Technical indicators, such as the MACD and RSI, are flashing warning signs, with the RSI dropping to 38, indicating rising selling pressure. The overall market trend for XRP has shifted towards a bearish outlook, causing short sellers to see opportunities while bullish investors exercise caution.

The XRP price action on a 5-minute chart reveals a series of distinct price channels that defined the short-term trend before a decisive bearish breakout. Initially, XRP moved within an upward channel, forming higher highs and higher lows until it touched strong resistance near $2.18. Following this, the price entered a downward channel, facing rejection at the resistance zone and falling toward the $2.10 support. Despite attempts to recover through minor upward channels, XRP failed to hold momentum and eventually broke below the support zone, confirming a bearish breakout.

Technical indicators support the bearish outlook. The RSI consistently flagged overbought conditions before each correction and is now hovering around 29, signaling strong selling pressure and an oversold condition. The MACD has produced several death crosses in recent hours, indicating growing bearish momentum. Notably, the most recent golden cross failed to sustain bullish strength, followed by another death cross during the breakout, confirming downward acceleration. The failure to reclaim the $2.12–$2.14 support-turned-resistance zone post-breakout reinforces the bearish structure. If selling pressure continues and RSI remains below 30, it could fuel further downside momentum.

Given the rising global uncertainty and the clearly bearish technical signals, XRP is in a fragile position. The failure to hold key support near $2.10, combined with the breakdown below the $2.00 level, suggests that bearish momentum is intensifying. The RSI is in oversold conditions, the MACD continues to show repeated death crosses, and macroeconomic pressure from policy moves like the Liberation Day tariffs create added volatility. This makes it difficult for XRP to find equilibrium in the near term. Unless bulls enter the market with significant volume, XRP is likely to return to lower prices soon, potentially falling towards $1.25 and possibly even as low as $0.62 if selling pressure continues. Traders should anticipate volatility in the following days.