XRP News Today: XRP Faces 20% Drop Risk as Technical Indicators Signal Downturn

XRP, the cryptocurrency, has recently shown signs of a potential downturn according to technical analysis. The digital asset formed a double top at $2.65, with a neckline at $2.47, and the rising wedge has broken down. This technical pattern suggests that if the price continues to fall below the $2.47 level, the next downside target is $2.30, indicating a potential pause in the uptrend. Furthermore, if the price falls below the lower support, it could accelerate the drop by 20% to $1.94.

In the price range of $2 to $2.04, there is a significant long leverage position of $50 million. This increases the risk of liquidation pressure, as any downward movement in the price could trigger a cascade of sell-offs to cover the leveraged positions. The on-chain NUPL (Net Unrealized Profit/Loss) indicator has entered the "Belief-Denial" zone, a historical signal that has preceded significant pullbacks in the past, as seen in 2018 and 2021.

The short-term outlook for XRP is marked by an intensifying battle between long and short positions. If XRP can break out of the multi-month falling wedge, there is a potential June target of $3.69, representing a 45% increase. However, a symmetrical triangle and Fibonacci extension point to a long-term target of $5.24. This duality in the technical indicators reflects the uncertainty and volatility in the cryptocurrency market, where both bullish and bearish scenarios are possible.