XRP News Today: XRP Falls Over 17% as Cup-and-Handle Pattern Signals Bear Market Approach

XRP’s price has retreated for the third consecutive day, nearing a local bear market as broader crypto sell-offs intensify. The decline, which has seen XRP drop over 17% from its annual high, aligns with the formation of a rare cup-and-handle pattern—a technical chart structure often associated with bearish momentum following extended rallies. This pattern, comprising a rounded bottom (the “cup”) and a subsequent smaller dip (the “handle”), suggests a potential breakdown in price support. XRP recently retested a critical support level at $3, its lowest in nearly a week [1].

The cup portion of the pattern formed between January and July 18, with the lowest point at $1.6238 in April. The current price movement represents the handle phase, characterized by a downward-sloping or sideways trend. Analysts estimate the potential profit target for the pattern by measuring the cup’s depth ($1.7625) and adding it to the cup’s peak at $3.3863, yielding a target of $5.1488—a 70% gain from the current level [1]. However, achieving this target hinges on the price stabilizing above key support levels and avoiding further breakdowns.

XRP’s short-term volatility has been amplified by aggressive selling on exchanges like South Korean platform Upbit, which saw a 15% drop on July 23. This aligns with historical trends where XRP’s corrections often lead to consolidation periods. A 10.34% decline on July 25 has been described by some experts as a “cool-off phase” rather than a long-term reversal, though the emergence of a “double top” pattern at resistance levels above $3.60 complicates the outlook [2]. This structure, formed by two failed attempts to break through a key resistance, historically signals a higher likelihood of sustained downturns [4].

Technical indicators remain mixed. While XRP’s price has held above $2.95—a critical psychological barrier—the Relative Strength Index (RSI) suggests oversold conditions, indicating potential volatility. Institutional activity has also intensified, with “whale” transfers hinting at strategic positioning by large holders [5]. Meanwhile, the RSI’s failure to reach overbought territory has led some analysts to argue that the current decline could be a temporary pullback rather than a structural collapse [2].

Long-term optimism persists for XRP, driven by catalysts such as rising odds of a spot XRP ETF approval in 2025, currently above 80% on Polymarket. BlackRock’s potential filing for an XRP ETF, following its success with Bitcoin and Ethereum funds, could further catalyze demand. Existing derivatives-based XRP ETFs, including the recently launched Ultra XRP ETF and Teucrium XXRP fund, have seen substantial inflows, with assets surpassing $530 million combined [1].

The recently passed GENIUS Act, which regulates stablecoins in the U.S., has also benefited XRP. Ripple’s stablecoin, Ripple USD, now holds $550 million in assets and is among the fastest-growing in the industry. Ripple Labs has accelerated partnerships post-SEC lawsuit, including collaborations with Ctrl Alt, Dubai Land Department, and the Bank of New York Mellon. These developments, coupled with increased institutional interest, position XRP as a key player in the evolving crypto ecosystem [1].

Market participants remain cautious, with some analysts forecasting a “Biblical move” in price if the cup-and-handle pattern breaks and support levels are retested [6]. However, such predictions remain speculative, and outcomes will depend on broader market dynamics. For now, the focus remains on whether XRP can stabilize above $2.95 to avoid deeper bearish scenarios.

The recent volatility underscores the interconnected nature of crypto markets, where regional exchange activity—such as South Korean trading—can amplify global trends. As XRP approaches critical technical levels, investors are advised to monitor institutional behavior and macroeconomic signals for clearer direction [2].

Source:

[1] [Rare pattern reveals why the XRP price is crashing today] (https://crypto.news/rare-pattern-reveals-why-the-xrp-price-is-crashing-today/)

[2] [Analyst Reveals The Real Reason XRP Price Crashed ...] (https://www.mitrade.com/insights/news/live-news/article-3-984519-20250724)

[4] [XRP Price Forms Double Top, This Structure Says A Crash ...] (https://www.mitrade.com/insights/news/live-news/article-3-984216-20250724)

[5] [XRP News Today: XRP Breaks Seven-Month Range ...] (https://www.ainvest.com/news/xrp-news-today-xrp-breaks-month-range-surpasses-3-00-whale-transfers-institutional-buys-intensify-volatility-2507/)

[6] [Expect A “Biblical Move” Off This Formation; Analyst Tells ...] (https://bitcoinist.com/expect-a-biblical-move-for-xrp/)