XRP is showing fresh signs of weakness as traders begin to reassess its technical structure following last week’s sell-off.
The token, which had been grinding higher inside a long-term rising channel for most of the year, is now flirting with breakdown territory – and analysts say the next move could be sharp.
A Fragile Trend Takes Shape
Market strategist TradingShot noted that XRP’s failure to sustain gains above $250 has shifted the market’s tone. What began as a healthy correction has evolved into a technical reversal, with the token slipping beneath the midpoint of its ascending channel – a zone that previously acted as dynamic support.
The latest slide coincides with a bearish crossover between the 50-day and 100-day moving averages, a formation that historically foreshadowed heavy drawdowns in XRP. The last time this setup appeared, the token plunged well below the 0.786 Fibonacci retracement, wiping out nearly half its prior gains.
If that pattern repeats, the analyst believes XRP could revisit $1.93 or even extend losses to around $1.70, a region that still technically sits within the channel’s lower boundary but would mark its weakest level in months.
Technical Pressure Mounts
At press time, XRP hovered near $2.32, continuing a modest decline that has now stretched into a second week. Both short- and long-term moving averages – the 50-day ($2.85) and 200-day ($2.62) – remain above the current price, underscoring that the broader bias has flipped negative.
Momentum indicators also tell a cautionary story. The 14-day RSI, sitting close to 30, suggests heavy selling pressure but also hints that XRP is approaching oversold territory, where short-lived rebounds often occur. Still, analysts say any bounce would likely stall near resistance unless broader market sentiment improves.
Broader Market Context
The downturn isn’t isolated to XRP. The wider crypto market has struggled for direction amid rising geopolitical tensions between the U.S. and China, which have dampened risk appetite across equities and digital assets alike. This macro backdrop, combined with thinning liquidity, has left even large-cap coins vulnerable to extended downside moves.
Despite that, a minority of traders remain hopeful that bargain-hunting could stabilize prices near current levels. If buyers defend the $1.90–$1.75 range convincingly, analysts say XRP could enter a phase of sideways consolidation before attempting a broader recovery.
For now, however, the technical landscape tilts toward caution. Without a decisive push above $2.60–$2.80, the bears remain in control – and the path of least resistance continues to point downward.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/xrp-price-outlook-bears-tighten-grip-as-breakdown-signals-deeper-losses/