- XRP price is showing strong signs of a 20% correction dropping below $2 to $1.70.
- A falling wedge formation and a massive drop in RSI readings show a weakening bullish momentum.
- XRP has broken a major rising channel support and is confirming a bearish market structure.
XRP price is showing signs of trouble ahead. Despite staging a strong rally earlier this year, technical indicators and on-chain data now show that a correction could be on its way.
Many analysts believe that XRP may soon dip below the $2 mark, and could even crash as low as $1.70. Here are some of the biggest signals to keep an eye out for, as well as some signs investors should watch out for.
XRP Price Enters Bearish Territory
XRP had a solid run earlier this year. From February to May, the token surged by about 62% and moved from a low of $1.61 to a local high of $2.65. However, that rally appears to be close to being over.
For the past few months, XRP has been trading in a falling wedge formation, which is a major signal that momentum is weakening gradually. However, that rally appears to have been short-lived.
As of now, XRP now trades at around $2.19, which is roughly 18% below its recent high. However, this drop might not be the end so far, because according to analysts, XRP could fall further by another 20% of the ongoing bearish trend continues.
More importantly, the cryptocurrency could be targeting a massive support zone around $1.70 to $1.72.
One of the clearest signals of XRP’s bearish turn comes from its Relative Strength Index (RSI). Keep in mind that in mid-May, XRP’s RSI stood at a healthy 68. This indicates that the bullish momentum was strong.
However, since then, it has dropped to around 41, which shows that the selling pressure is increasing. With this in mind, if the RSI continues to drop, it could be a signal that there is more pain ahead for the cryptocurrency and its investors.
A Key Support Has Been Broken
According to recent insights from technical analyst “MasterAnanda” on TradingView, XRP recently broke below a rising channel pattern. The analyst noted that this structure previously provided strong support during the rally.
More notably, the token has now seen three consecutive daily closes beneath this support line. It is worth noting that the break below this channel is no small event. It shows that the market structure is weakening and that buyers are starting to lose confidence.
While a short-term bounce is possible, MasterAnanda warns that the bearish trend may not be over yet. His target in this case, sits at around $1.72, which could serve as the next major support.
Bearish Divergence Raises More Red Flags
Another disturbing signal is the bearish divergence forming on XRP’s weekly chart. Since November 2024, the cryptocurrency’s price has been making higher lows, which tends to indicate some upward momentum.
However, the weekly RSI has been steadily dropping from 92 to 51 during the same period. This divergence between price and RSI is troubling.
In technical analysis, such a disconnect is a major sign of a trend reversal. It means that although the price is on the rise, the underlying strength of that movement is fading. Traders tend to see this as a cue to take profits or reduce exposure.
Moreso, the resistance zone between $2.50 and $2.65 is another major issue because XRP has repeatedly failed to break through this level, and another rejection here could worsen the dump.
On-Chain Metrics Confirm the Weakness
The bearish outlook isn’t limited to price charts. On-chain data from Glassnode also paints a worrying picture for XRP. For example, back in March 2025, the XRP Ledger saw a year-to-date high of 608,000 daily active addresses (DAAs).
That number has since plummeted to around 31,200, which shows that fewer users are interacting with the network. In addition, new wallet creation has fallen from a high of 15,800 new addresses in March to just 4,400 at the time of writing.
These metrics are often seen as a proxy for investor interest and user adoption, and a decline in both indicates that the overall sentiment around XRP may be turning sour.
Overall, with XRP price hovering near $2.19, the next few weeks will be very important for the price of the cryptocurrency. If the price fails to hold the $1.70–$1.72 support range, it could lead to an even deeper decline.
However, if XRP manages to bounce from this range and attract new buying interest, it could stabilize and attempt another push toward the $2.50 resistance.
