XRP is currently trading at $2.20, approximately 17% below its May peak of $2.65. Technical patterns and declining network activity suggest a possible further drop to around $1.70 in the near term.
Bearish Technical Patterns Emerge
Analysts have identified an inverted V-shaped correction pattern on XRP’s daily chart, indicating a potential 20% decline from current levels. This pattern follows a 62% surge from $1.61 to $2.65 between April and May, which met resistance at the $2.65 mark. Subsequent profit-taking has led to a downward trend.
The Relative Strength Index (RSI) has dropped from 68 to 41 since May 12, signaling increasing bearish momentum. A further decline could see XRP testing the $1.70 support level.
Declining Network Activity
On-chain data reveals a significant decrease in daily active addresses (DAAs) on the XRP Ledger, falling from 608,000 in March to approximately 30,000 in early June. This decline suggests reduced user engagement and transaction activity, potentially impacting XRP’s price stability.
Key Support and Resistance Levels
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Immediate Resistance: $2.30
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Support Levels: $2.00 and $1.92
A close above the 21-day Exponential Moving Average (EMA) at $2.30 could signal a bullish reversal. Conversely, failure to maintain support at $2.00 may lead to further declines.
Market Outlook
While some analysts predict potential surges for XRP, possibly reaching $25–$75 in June, these forecasts are contingent on various factors, including regulatory developments and market sentiment. In the short term, traders should monitor key technical levels and on-chain metrics to assess XRP’s price trajectory.