XRP breaks through important support – A strong correction is approaching?

The market sentiment for XRP is currently leaning heavily towards the negative, while the ongoing trade war continues to weigh down, increasing the bearish pressure.

Current Price Motivation

At the time of writing, XRP is trading around $1.77, recording a slight decrease of 1.07% in the past 24 hours.

During this period, trading volume has decreased by 10%, reflecting a significant decline in interest and participation from investors compared to previous sessions.

Despite having low volatility, the overall trend of XRP remains bearish. According to technical analysis, this altcoin has recently broken the bullish ‘head and shoulders’ pattern on the daily chart — a rather pessimistic signal.

Notably, XRP has also closed the daily candle below the important support zone at the neckline ( at $1.95, increasing the likelihood of continued downward adjustment in the upcoming sessions.

![xrp-giam])https://img.gateio.im/social/moments-574e7ed9ee6aa13bf66be21fb21383bc(XRP/USDT Daily Chart | Source: TradingView## Is a 35% crash possible?

This neckline also serves as an important horizontal support level that XRP has persistently maintained since November 2024.

In the past, each time the price reached this area, XRP typically rebounded, indicating significant buying power here. However, this time, the support level has officially been breached – a negative signal for the price trend.

Based on recent price action and previous technical patterns, breaking through this key support level opens up the scenario of a deep correction, with an estimated decline of up to 35%, bringing the price of XRP down to the $1.20 range in the short term.

Notably, XRP has now also fallen below the 200-day Exponential Moving Average )EMA( – an important technical indicator in determining long-term trends.

Trading below the 200-day EMA indicates that selling pressure is dominant, reflecting the prevailing pessimistic sentiment in the market.

In this context, traders often take advantage of technical retracements to seek short-selling opportunities )Short(, anticipating further deep declines.

On-chain indicators show a downward trend

From a bearish perspective, traders seem to be clearly reflecting a pessimistic sentiment as they aggressively bet on the possibility of prices continuing to decline — according to data from the on-chain analysis platform Coinglass.

Specifically, at the time of writing, the Long/Short ratio of XRP stands at 0.98, indicating that the bears are dominating the market. Furthermore, the number of Short positions is also overwhelming compared to Long orders, reflecting that bearish sentiment is still influencing the majority of investors.

![])https://img.gateio.im/social/moments-e72c685fd6f151234d597f44ad12c01c(Source: CoinglassDisclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

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SN_Nour

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