XRP Drops 35% From High, Faces 25% Decline In April

XRP, the cryptocurrency, has experienced a significant decline, dropping over 35% from its multi-year high of $3.40 in January. This downward trend is expected to intensify in April as new bearish signals emerge. The recent price action of XRP has formed a classic bearish reversal signal known as an "inverse cup and handle formation." This pattern indicates a loss of buyer momentum following an uptrend, resembling an upside-down teacup with a rounded decline and a brief consolidation forming the handle.

The inverse cup and handle pattern is confirmed when the price breaks below the handle’s support, often leading to a drop equal to the height of the cup. In XRP’s case, the rounded "cup" peaked around March 19 and completed its decline by the end of the month. The ongoing sideways price movement between $2.05 and $2.20 forms the "handle." A breakdown below this horizontal consolidation range could validate the bearish structure, potentially leading to a move toward the $1.58 support area. This suggests that XRP could decline by over 25% in April if the inverse cup and handle setup plays out as intended.

Adding to the sell-off risk is data from the volume profile visible range (VPVR) indicator, which shows the point of control (POC) around $2.10–$2.20, a key support zone. A breakdown below this high-volume area could trigger a sharper drop, as lower volume levels below have offered little historical support. Conversely, a strong close above the 50-period 4-hour EMA (red line) near $2.14 could invalidate the inverse cup-and-handle pattern. Such a breakout may shift momentum in favor of the bulls, potentially paving the way for a rally toward the 200-period 4-hour EMA (blue line) around $2.28.

Whale activity also points to more sell pressure. As of April 5, the 90-day moving average whale flow chart showed sustained net outflows from XRP’s largest holders since late 2024. During XRP’s sharp price boom in Q4 2024, whale activity flipped deeply negative, indicating large entities were distributing into strength and selling the local tops. This trend has continued into 2025, with the total whale flow remaining firmly below zero. This divergence between rising prices and declining whale support suggests weakening institutional conviction and raises concerns over XRP’s near-term price stability unless accumulation resumes.

Additionally, global economic factors such as the US President’s tariffs and the Federal Reserve’s hawkish response have dampened risk sentiment, which may further weigh down XRP and the broader crypto market in the coming quarters. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.