- Bearish Momentum: XRP has dropped 10% over the past week, with its price stuck in a descending parallel channel, signaling continued downside pressure as buying interest wanes.
- Negative Indicators: XRP is trading below its 20-day EMA, and the Chaikin Money Flow (CMF) is in a downtrend, suggesting weak buying pressure and increasing selling dominance.
- Potential for Further Decline: If demand doesn’t pick up, XRP could fall to $1.47, but if buying activity increases, it may push the price toward $2.81 or even back to its all-time high of $3.40.
XRP’s been on a downward slide, dropping 10% in the past week as the bearish momentum continues to build. The fourth-largest cryptocurrency by market cap is facing mounting pressure, with dwindling buying interest hinting that the downward trend might not be over just yet.
XRP’s Struggles as Buying Pressure Fades
Since reaching its all-time high of $3.40 on January 16, XRP has mostly been stuck in a descending parallel channel—a bearish pattern that forms when an asset’s price moves between two downward-sloping trendlines, signaling a period of decline. This kind of price movement shows that sellers have the upper hand, while buying activity is weak, contributing to the ongoing downward pressure on XRP.
Right now, XRP is trading at $2.11, sitting below its 20-day exponential moving average (EMA), which is a key indicator of short-term price trends. The EMA helps track the asset’s average price over the last 20 days, giving more weight to recent price action. When the price falls below the EMA, it signals that selling pressure is strong, and the token is in a bearish phase. Unless buyers step in and push the price back above the EMA, we could see continued downside momentum.
Money Flow and Bearish Indicators
Another red flag is XRP’s Chaikin Money Flow (CMF), which is currently in a downtrend and could soon dip below zero. The CMF measures the flow of money into and out of an asset, and right now, it’s sitting at 0.02, indicating that the buying pressure is weakening. If it crosses below zero, it’s a clear sign that selling is dominating, and money is flowing out of XRP, reinforcing the bearish outlook.
Could XRP Crash to $1.47?
If the current trend continues and new demand doesn’t materialize, XRP risks dropping below the $2 mark. In the worst-case scenario, it could fall to $1.47, a price level it hit back in November. That would mark a significant drop from its current position, further fueling fears of a continued bear market.
But there’s still hope. If selling pressure starts to fade and buying interest picks up, XRP could break through the resistance at $2.81 and possibly head back toward its all-time high of $3.40. For now, though, the market’s direction is unclear, and all eyes are on whether buyers will step in to change the narrative.
