XRP Drops 5% as Bearish Trends Intensify

XRP has broken through a key structural support level and is currently trading at $1.9432. This price reflects a weakening trend following a failed attempt to hold above the psychological and technical zone of $2.0390, which previously served as a consolidation base.

On the 4-hour chart, XRP formed a consolidation channel between $1.82 and $1.90 after a steep drop to $1.69, resembling a bear flag pattern. This pattern typically signals a continuation of the downward trend. A break below $1.82 could confirm further selloff. The daily chart shows a large head and shoulders pattern that broke down from the neckline at $2.03, implying a medium-term bearish outlook with targets projecting toward $1.50–$1.60. In the short term, a possible double-bottom has formed around $1.69, hinting at a potential bounce. However, confirmation above $1.90 is needed for reversal validation.

On the 4-hour and daily charts, the price trades near or below the lower Bollinger Band, suggesting high volatility and oversold territory. A reversion to the mean toward the mid-band ($1.97–$2.03) is possible in the short term but faces heavy resistance. The MACD shows weak recovery signs, with histogram bars turning lighter red on the 4-hour chart, indicating a slowing bearish momentum. However, confirmation is still pending. The RSI on the 4-hour and 1-hour charts hovers between 35–40, reflecting a bearish bias but not oversold, leaving room for further downside. On the 15-minute chart, the RSI has bounced from oversold territory, offering a short-lived relief rally potential.

XRP faces headwinds due to ongoing litigation with the SEC, with investor confidence tightly correlated to court outcomes. Additionally, lackluster crypto market sentiment and broader macroeconomic tightening are weighing on altcoins. Despite Ripple’s growing institutional use cases globally, technical structure dominates price direction in the short term. XRP remains vulnerable below $2.03, and without bullish momentum or fundamental catalyst, bearish continuation toward $1.70–$1.50 is likely. A reclaim of $2.05 with volume would be the first sign of a reversal.

The bearish sentiment surrounding XRP has intensified, with a significant portion of traders adopting a pessimistic outlook. This trend is evident as the number of long positions in XRP has surged, indicating a growing bullish sentiment among some traders. However, the rally that many had hoped for has yet to materialize, leaving the market in a state of uncertainty. The lack of a clear upward trend has led to a mixed sentiment, with some traders remaining optimistic while others are increasingly bearish. The market's volatility and the absence of a definitive rally have created a challenging environment for XRP traders, who are now grappling with the possibility of a prolonged bearish grip. Despite the surge in long positions, the overall market sentiment remains cautious, with traders closely monitoring any signs of a potential reversal. The situation highlights the delicate balance between bullish and bearish forces in the XRP market, as traders navigate through the current bearish grip while hoping for a reversal that could signal a change in fortunes.