-
The XRP price rebound is facing potential reversal risks as bearish patterns and profit-taking pressure suggest a significant decline ahead.
-
Recently surging nearly 30% from a low of $1.61, XRP is encountering resistance that could lead to a correction between 40% to 50% based on technical analysis.
-
Renowned trader Peter Brandt has indicated that XRP’s market cap might see a drastic reduction of 50% in the coming weeks, as bearish trends consolidate.
XRP’s recent price surge encounters bearish signals that may result in a significant correction of up to 50%, according to key technical indicators.
XRP’s Cup-and-Handle Pattern Indicates a Potential 40% Drop
The inverse-cup-and-handle (IC&H) pattern forming in XRP suggests a looming price drop of at least 40% in the upcoming weeks. This classic bearish reversal pattern manifests when a cryptocurrency undergoes a rounded downward trajectory, followed by a temporary consolidation phase, ultimately positioned above a critical support level.
A confirmed breakdown phase occurs when XRP decisively closes below the defined support threshold, potentially leading to a price decline equivalent to the maximum height of the pattern.
As of April 19, XRP is in the handle formation phase, with close attention on the neckline support situated at approximately $2. Should it break below this level, analysts estimate a primary target around $1.24, representing a drastic decline nearly 40% from current values.
This inverted cup-and-handle target complements XRP’s 200-3D exponential moving average (200-3D EMA), projected at around $1.28, aligning with forecasts for a market top in November 2024.
In the context of market sentiment, veteran trader Peter Brandt has aptly indicated that XRP’s valuation might undergo a significant contraction, with market cap projections hinting at a 50% drop in the near term.
On-Chain Fractal Signals a Possible 50% Correction for XRP
The ongoing formation of XRP’s inverse cup-and-handle pattern aligns with historical price movements, thereby signalling the possibility that the anticipated rally in 2025 has peaked. This behavior mirrors past market cycles where XRP experienced steep pullbacks upon reaching extreme highs.
Data indicates that following major surges, XRP usually sees sharp declines toward its aggregated realized price. For instance, during notable highs achieved in 2018 and again in 2021, pullbacks followed similar trajectories.
The realized price functions as a critical psychological threshold, signifying the average price at which the XRP supply was last transacted. When market prices surge above this level, it fosters a condition of complacency among holders, often leading to profit-taking.
In early 2025, XRP peaked beyond $3.20 but soon encountered selling pressure, repeating historical patterns observed during previous market transitions. Currently, the realized price rests at approximately $1, insinuating a potential bearish target that represents a 50% drop from prevailing market levels.
Interestingly, this established realized price not only converges with the 200-week EMA, situated at $0.81, which has been referenced in Cointelegraph analyses as a benchmark for bear market targets, but it also encapsulates a critical selling point for many investors.
Moreover, with over 80% of XRP addresses reportedly in profit, this metric also suggests that a significant amount of profit-taking could ensue, further escalating the possibility of a price correction toward the realized price.
Likelihood of XRP Reaching Record Highs is Diminishing
Market sentiment surrounding XRP’s potential to reach all-time highs above $3.55 is depicted as waning, according to recent data from Polymarket. As of April 19, predictions indicate that the likelihood of XRP achieving such a milestone by 2026 has reduced to merely 35%, translating to a dramatic 25% drop from the confidence peak observed in March.
This decline in optimism coincides with a broader apathetic sentiment across the crypto market during April, attributed to diminishing risk appetites driven by escalating global tariff tensions, largely influenced by prevailing economic policies.
Conclusion
In summary, XRP’s current market dynamics reveal potential for a significant correction, with indicators suggesting drops of 40% to 50% based on evolving technical analyses and historical selling patterns. Traders are advised to remain vigilant as the market navigates through these bearish signals, evaluating their positions strategically to mitigate potential losses.
