Can XRP Drop 55% If Bitcoin Keeps Falling? Experts Warn of Risks

In the volatile world of cryptocurrency, XRP continues to face downward pressure amid technical and market challenges. After failing to sustain its position above the $2 mark, the ripple coin is now exploring further declines, prompting traders to reassess its recovery prospects. With key support levels in sight and rising selling activity, the outlook for XRP remains cautious as market sentiment shifts.

Classic XRP pattern targets $0.88

The XRP/USD trading pair is forming a megaphone or broadening wedge pattern on the weekly timeframe, a technical formation often signaling increased volatility and potential trend reversals. This pattern, characterized by rising highs and lower lows, suggests that a significant correction may be imminent. A decisive break below the pattern’s lower boundary—around the $1.80 level—could accelerate XRP’s decline. The projected target based on this pattern is around $0.88, representing a 54% decline from current levels.

The immediate resistance levels to watch are the 100-week simple moving average (SMA) at $1.60 and the 200-week SMA at $1.05, both crucial for confirming the pattern’s breakout and trend direction. The weekly relative strength index (RSI) has fallen sharply from overbought levels of 91 in December 2024 to 39, indicating mounting selling pressure and decreasing momentum. Meanwhile, XRP’s Net Unrealized Profit/Loss (NUPL) metric has shifted from euphoria to denial, with investor sentiment becoming increasingly anxious.

More than 41.5% of XRP investors are currently underwater, raising concerns about potential panic selling. Historical data reveals that similar setups back in 2018 and 2021 preceded sharp market corrections, raising warnings of a possible extended downturn in the coming weeks.

XRP realized losses rise to seven-month highs

During recent trading sessions, XRP dipped to an intraday low of $1.81, levels last seen in April, driven by mounting sell-off activity. Blockchain analytics confirm that many investors are liquidating their holdings at a loss, reminiscent of past major market crashes. According to data from blockchain analytics platform Glassnode, XRP’s realized losses have surged to levels not seen since April, with the 30-day exponential moving average (EMA) of daily realized losses reaching approximately $75 million per day.

“The 30-day EMA of daily realized losses has spiked to about $75 million per day,” Glassnode reported on social media. This surge comes just before XRP’s price fell below the $2 mark, shedding 50% from its peak of $3.66 recorded in mid-July.

The combination of weakening on-chain demand and profit-taking by large holders or whales could exacerbate the downside risks, as previously noted by market analysts. As cryptocurrency markets remain sensitive to macroeconomic trends and regulatory developments, XRP’s ongoing decline underscores the importance of cautious trading and research when navigating the crypto markets.

This article was originally published as Can XRP Drop 55% If Bitcoin Keeps Falling? Experts Warn of Risks on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.