- XRP loses key support and risks deeper corrections if it doesn’t hold its ground.
- Breaking below the symmetrical triangle pattern suggests a bearish continuation.
- A strong close above the 50-day SMA could trigger a short-term rally.
XRP has taken a serious hit, dropping 44% in just four days and trading as low as $1.77 on Feb. 3. The token broke below its 50-day simple moving average (SMA) at $2.61, which could spell more downside if history repeats itself.
If we rewind to Aug. 15, 2023, XRP also dipped beneath the 50-day SMA after holding above it for 30 days. The result? A brutal 31% sell-off. And if you go back even further to May 19, 2021, the same thing happened, only this time the crash was a massive 71% drop. This pattern isn’t looking too friendly for XRP bulls.
Crypto analyst Kwantxbt weighed in, saying that $2.49 is now the critical level to watch. If that price gets taken out, XRP could be headed for $2.30 or lower in the short term.
The Symmetrical Triangle Breakdown Spells Trouble
A closer look at XRP’s technicals reveals something even more concerning—it has fallen out of a symmetrical triangle, a pattern that often leads to a continuation of the previous trend.
For those unfamiliar, symmetrical triangles form when price action creates higher lows and lower highs, squeezing into a tighter range. The breakout direction determines whether it’s bullish or bearish.
In this case, XRP broke downward, suggesting more selling pressure ahead. As of Feb. 3, the price already dropped below the $2.50 target from a smaller triangle and is continuing to slide. If this setup plays out fully, XRP could be looking at even deeper losses, possibly toward $1.45.
Can XRP Bounce Back? Key Resistance Levels to Watch
There’s still hope for the bulls—but it’s going to take a strong recovery move. If XRP manages to close above the 50-day SMA, it could reclaim some lost ground. A successful breakout above the small triangle’s upper trendline could send the price soaring back toward $3.75.
That’s a big “if,” though. Right now, XRP is skating on thin ice, and unless buyers step in soon, this downtrend could continue for a while. The coming days will be crucial—either XRP finds a floor and fights back, or it spirals further into the red.
