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XRP News Today: XRP Surges 50% In A Month, Faces 20% Drop Risk

Coin WorldThursday, May 15, 2025 7:43 am ET

1min read

XRP has experienced a significant rebound, surging by over 50% in a month after hitting a local low at $1.80. This price increase has been driven by an improving risk appetite and the prospects of an “altseason.” However, the question remains whether XRP can continue its rally from current levels or if it faces a pullback in the coming days.

One of the key indicators suggesting a potential sell-off is the formation of a double top pattern near $2.65. This pattern, which includes two clear peaks and a neckline around $2.47, signals a possible trend reversal. The confirmation of this pattern occurred when XRP dropped below the neckline, indicating a bearish setup. A confirmed breakdown below $2.47 points to a downside target near $2.30, suggesting weakening momentum after a strong rally. If buyers fail to break above $2.65, the pattern remains in play and bearish.

Additionally, XRP has broken down from a rising wedge pattern, signaling a shift from bullish to bearish momentum. This pattern is confirmed when the price falls below its lower trendline, which XRP appears to be attempting. Breaking below the support zone increases the chance of XRP falling another 20% to around $1.94. This level is derived from measuring the height of the rising wedge pattern and subtracting it from the breakdown point. The $2.00–$2.04 range is also crucial as it holds a large number of leveraged long positions worth around $50 million. If XRP drops below this range, many of these positions could be forced to close, causing a long squeeze and adding selling pressure.

Onchain metrics also indicate that XRP’s Net Unrealized Profit/Loss (NUPL) has shifted into the Belief–Denial zone. This phase historically marks the early stages of major corrections, as seen in 2018 and 2021. If history repeats, XRP may face more downside in the short term, aligning with the price targets highlighted by the double top and rising wedge technical setups.

Despite these short-term risks, long-term charts for XRP remain bullish. A potential 45% rally toward $3.69 by June is indicated if a breakout from a multimonth falling wedge pattern plays out as intended. However, if XRP falls back below the wedge's upper trendline and loses support at the 20-day and 50-day exponential moving averages, the bullish setup could be invalidated, risking a decline toward $1.75. Several long-term XRP price projections have targets of $5.24 and even $17, based on symmetrical triangle patterns and Fibonacci extensions. This persistent bullish bias suggests that the rally is probably not over, despite the short-term pullback risks.

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