XRPUSD’s potential for a 20% fall to $1.70 has been highlighted, following an inverted V-shaped correction pattern on the daily chart. This drop risk is further exemplified by a bearish divergence from the weekly RSI, suggesting an increase in downward momentum. Additionally, a decrease in daily active addresses and new addresses may indicate diminished transaction activity and reduced demand for XRP.
The price of XRP has fallen 18% below its May peak of $2.65, and a combination of several indicators points towards a possible decrease to around $1.70. The inverted V-shaped pattern formed between April 7 and June 2 predicts a 20% price drop.
After an initial climb, XRP’s price surged 62% from a low of $1.61, but buyer congestion halted the sharp recovery at the $1.72 resistance level. Bears took profits during this rally, leading to a notable correction to the current levels. The relative strength index (RSI) has dropped from 68 to 41 since May 12, indicating a growing downward momentum.
A popular TradingView analyst, MasterAnanda, aligned with these sentiments, stating that decreasing bullish momentum and rejection from key support areas potentially threaten a drop to below $2.00 for XRP. He noted that XRP has broken below a rising channel, with three consecutive daily closes beneath the lower trendline, which suggests continued bearish momentum.
The bearish divergence between XRP’s price and the RSI is further reinforced by the daily chart, which shows a rise in the XRPUSD pair from November 2024 to June 2025, but a simultaneous decrease in its weekly RSI from 92 to 51.
The XRP Ledger has seen a significant decline in network activity over the past two months. Glassnode’s onchain data reveals that the daily active addresses (DAAs) are far below the peak recorded on March 19. With only about 31,200 DAAs currently, user transactions have significantly decreased, possibly indicating a lack of confidence in XRP’s short-term outlook.
Note: This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.
