- XRP fell 3% to $1.93, continuing its downward movement and undermining prospects of a recovery above $2.
- The XRP/USD weekly chart shows a megaphone pattern signaling a possible further decline to $0.88 if the price breaks below $1.80.
- Key support levels include the 100-week simple moving average at $1.60 and the 200-week SMA at $1.05.
- More than 41.5% of XRP holders are currently at a loss, increasing potential selling pressure.
- Realized daily losses recently spiked to about $75 million, reaching seven-month highs as selling intensifies.
The price of XRP declined by 3% in the last 24 hours, trading near $1.93 as of Friday. This drop extended its previous fall and raised concerns about its ability to sustain a recovery above the $2 mark.
Technical analysis identifies a megaphone pattern on the weekly XRP/USD chart. This shape, characterized by higher highs and lower lows, suggests a significant correction may occur if the price falls below the lower boundary near $1.80. A breach of this line could lead to a decline toward the pattern’s measured target of $0.88, representing a 54% drop from the current value.
Critical price levels to monitor include the 100-week simple moving average (SMA) at $1.60 and the 200-week SMA at $1.05. The weekly Relative Strength Index (RSI) has decreased to 39 from an overbought 91 in December 2024, pointing to growing downward momentum.
Investor sentiment also shows strain. Data indicates over 41.5% of XRP holders are currently underwater, meaning they hold the asset at a loss. Such conditions often contribute to greater selling pressure.
Realized losses from XRP sales have surged, with the 30-day exponential moving average (EMA) of daily realized losses reaching approximately $75 million, marking the highest level since April. This increase coincides with an intraday price low of $1.81—prices last seen in April—and a total decline of about 50% from the mid-July peak of $3.66, as reported by Cointelegraph Markets Pro and Binance” target=”_blank” rel=”noopener nofollow”>TradingView.
According to blockchain data from Glassnode, ongoing selling activity and absence of new on-chain demand, combined with sustained profit-taking by holders of large positions, may heighten risks of further price declines.
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