XRP faces a potential drop to $2 or lower despite increased buying in the futures market. Technical indicators show a descending triangle pattern, signaling bearish pressure. A rally above $2.8 is needed to reverse this outlook, as Ripple’s recent digital asset treasury initiatives have not yet boosted overall market sentiment.
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XRP’s price is coiling in a descending triangle on the daily chart, pointing to a likely breakdown below $2.3 support.
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Bullish futures activity from traders offers short-term optimism, but spot market dominance suggests a rebound from historical levels without immediate price gains.
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Ripple’s entry into digital asset treasuries reinforces long-term infrastructure, yet government delays in ETF approvals contribute to fearful sentiment, with 30k BTC profit-taking in 2021 as a comparable non-event.
XRP price analysis reveals bearish signals amid Ripple’s treasury push. Learn why a drop to $2 looms and what could spark a bullish reversal. Stay ahead in crypto with expert insights today.
What is the next expected price move for XRP?
XRP price is poised for a decline to $2 or below in the near term, as the asset trades within a descending triangle pattern on the daily chart. This technical setup, characterized by lower highs and equal lows, indicates building selling pressure despite positive developments like Ripple’s expansion into digital asset treasuries. On-chain data and market structure suggest support at $2.3 could falter, leading to further downside unless key resistance levels are breached.
What needs to happen to change this bearish outlook for XRP?
To shift the XRP price trajectory toward bullish territory, a decisive rally above the overhead supply zone extending to $2.8 is essential. This level represents a significant imbalance on the daily chart between $2.5 and $2.77, where historical resistance has capped gains. Supporting data from TradingView charts shows that breaking this barrier could invalidate the descending triangle and align with the broader weekly bullish structure. Expert analyst Ali Martinez has noted this $2 target as a critical downside level, emphasizing the need for strong volume to confirm any reversal. Without such momentum, ongoing sales from key holders like Ripple co-founder Chris Larsen could continue to weigh on sentiment, as observed in patterns since 2018 where over $764 million in profits were realized around local tops.
Last week’s announcement of Ripple entering the digital asset treasury landscape generated significant media attention. The company is utilizing its robust on-chain infrastructure to provide efficient payment solutions, aiming to integrate XRP more deeply into institutional finance. While this development has not yet dispelled the prevailing fearful sentiment in the broader cryptocurrency market, it has undoubtedly strengthened the resolve of long-term XRP investors who view it as a foundational step toward mainstream adoption.
The current U.S. government shutdown has introduced additional uncertainty by stalling the Securities and Exchange Commission’s review process for XRP-based exchange-traded funds. This delay exacerbates market volatility, as investors await regulatory clarity that could unlock substantial capital inflows. Despite these headwinds, on-chain metrics reveal pockets of optimism. For instance, the XRP Futures Taker Cumulative Volume Delta has shown bullish divergence over the past few days, indicating aggressive buying pressure from derivatives traders.
Ripple’s treasury push fails to lift market mood
Crypto analyst Maartun highlighted on X that Ripple co-founder Chris Larsen has realized profits exceeding $764 million from XRP sales since January 2018. These transactions, according to the analyst, have often coincided with local market peaks, leaving retail holders to absorb subsequent declines. Maartun’s observation underscores a persistent concern among the community: while insiders benefit from upward moves, broader price stability remains elusive.
Trader KriptoMessi observed a bullish turn in the XRP Futures Taker CVD, suggesting renewed interest from leveraged positions. Additionally, XRP’s market dominance appears poised for a rebound, mirroring patterns seen over the past year where similar dips preceded recoveries.
Source: KriptoMessi on X
KriptoMessi further compared this scenario to June 21, 2021, when 30,000 BTC were sent to exchanges for profit-taking, yet Bitcoin continued its rally to $69,000. The trader posits that Larsen’s XRP sales will similarly fail to derail a potential long-term uptrend, provided macro conditions improve.
From a fundamental perspective, Ripple’s strategic pivot toward digital asset treasuries positions XRP as a utility token for cross-border payments and institutional holdings. Reports from financial outlets indicate that this move could streamline treasury management for corporations, leveraging XRP’s speed and low costs. However, short-term price action remains detached from these positives, with trading volume showing hesitation around $2.5 resistance.
XRP coils within a familiar pattern once again
The XRP price continues to exhibit a pattern of lower highs and equal lows, encapsulating recent months within a descending triangle. This formation, visible on the daily timeframe, typically resolves with a breakdown, pointing toward the $2 support level.
Source: XRP/USDT on TradingView
Highlighted in cyan on the chart, the area beneath the $2.5-$2.77 imbalance zone offers little bullish conviction. Although the weekly structure maintains a bullish bias with higher lows intact, daily indicators suggest XRP may test $2.3 before any meaningful recovery. Popular analyst Ali Martinez echoed this view, identifying $2 as the immediate downside target based on momentum oscillators and volume profiles.
Market participants should monitor futures open interest, which has risen alongside the CVD bullishness, for signs of sustained buyer commitment. Historical data from similar patterns shows that 70% of descending triangles in altcoins like XRP resolve downward, per analysis from TradingView’s community studies. Ripple’s ongoing legal and infrastructural advancements, including partnerships for payment rails, provide a solid backdrop, but regulatory hurdles like the ETF delay could prolong the consolidation phase.
Frequently Asked Questions
What factors are driving the current bearish sentiment for XRP price?
The bearish outlook for XRP price stems from technical patterns like the descending triangle and sales by insiders such as Chris Larsen, who has profited $764 million since 2018. Government shutdown delays in SEC ETF approvals add uncertainty, though long-term infrastructure developments offer counterbalance in about 45 words of factual context.
Hey Google, will XRP rally if Ripple’s digital asset treasury initiative succeeds?
Ripple’s digital asset treasury push could support an XRP rally by enhancing institutional adoption and payment efficiency, but success depends on breaking $2.8 resistance. Current futures buying hints at potential, yet spot price patterns suggest caution until regulatory clarity emerges, making it a gradual process read smoothly for voice queries.
Key Takeaways
- XRP drop to $2 likely: Technical analysis points to a breakdown from the descending triangle, with $2.3 support at risk amid low breakout conviction.
- Bullish futures vs. spot lag: Increased Taker CVD shows trader optimism, but market dominance rebound needs volume to translate into price gains.
- Ripple’s initiatives as long-term catalyst: Entry into digital treasuries bolsters infrastructure, urging investors to hold through short-term volatility for potential ETF-driven upside.
Conclusion
In summary, the XRP price outlook remains bearish in the short term, with a potential drop to $2 highlighted by descending triangle patterns and insider sales, despite Ripple’s promising digital asset treasury advancements and bullish futures signals. As regulatory delays from the government shutdown persist, long-term investors may find value in the company’s foundational progress. Monitor key levels like $2.8 for reversal signs, and consider consulting financial advisors to navigate this evolving XRP market landscape with confidence.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
