XRP Price Analysis: Bearish Pattern Targets $2.60?
Key Takeaways
- XRP is showing a bearish Inverted Cup and Handle Pattern near $2.95.
- Significant outflows suggest dip-buying activity.
- High short interest and declining volume hint at a deeper correction toward $2.60 if key support fails.
Ripple (XRP) indicates a potential pullback, with an Inverted Cup and Handle Pattern emerging on the daily chart. This structure, coupled with decreasing volume, suggests possible downside pressure.
XRP has already decreased almost 20% from its July highs, and bearish sentiment persists unless bulls can defend the $2.95 support level.
Currently, XRP is hovering around $2.937, showing a slight 0.70% increase over the last 24 hours. While the price has stabilized around this level for four days, trader participation has diminished.
According to CoinMarketCap, the 24-hour trading volume has dropped by 17%, indicating reduced trader engagement. This decrease reflects a cautious approach amid the observed bearish setup.
XRP Technical Analysis
Technical analysis indicates that XRP might experience a price decline. A bearish Inverted Cup and Handle pattern has formed on the daily chart, suggesting a possible sell-off.
If bulls fail to maintain the $2.95 level, the price may drop by approximately 13%, targeting the next support zone near $2.60.
Analyst Ali Martinez has also identified $2.55 and $2.40 as critical levels to monitor, reinforcing the possibility of further downside if $2.95 is breached.
Despite the bearish structure, the Supertrend indicator on the daily timeframe remains green and trails below the price, suggesting that the broader trend still favors buyers, at least for now.
Exchange Outflows
On-chain data reveals that over $88 million worth of XRP has been withdrawn from exchanges in the past 48 hours, according to CoinGlass.
These Exchange Outflows suggest that long-term holders may be accumulating XRP during the price dip, anticipating a future rebound.
Traders Building Shorts Near Support
Traders appear to be betting on the bearish side, aligning with the current market sentiment.
CoinGlass data indicates major liquidation levels for XRP are at $2.89 (downside) and $3.07 (upside).
At these levels, traders have established $62.72 million in long positions and $113.64 million in short positions.
Combining these metrics suggests a short-term bearish trend, while the long-term outlook remains cautiously bullish. Investors should remain vigilant and informed as market conditions evolve. Platforms like Codeum provide essential smart contract audits to secure your investments in this volatile market.