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The recent price action for XRP has shown little sign of strength as the crypto is now battling sustained bearish pressure. Since the start of the correction phase on May 12, XRP has posted consecutive lower highs on the daily timeframe, slipping further from its May peak of $2.65. This ongoing decline comes after a rally that started last month, which saw the XRP price rebound from $1.80 in early April.
However, the momentum that drove that surge has now been overtaken by a clear wave of red candles, and technical analysis suggests that the XRP price can crash below $2 again in the coming days to the April low.
MasterAnanda Flags Risk Of Further XRP Downside
A recent technical update shared by analyst MasterAnanda on TradingView reinforces the short-term bearish sentiment. The chart shared alongside the analysis shows XRP has broken down from a rising channel, with three consecutive daily closes below the lower trendline.
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These three consecutive red days have rejected the setup of an upwards bounce on the lower trendline. Although XRP is still trading above $2 right now, the longer it continues to trade below the $2.30 region, the more likely a steeper drop becomes.
In his analysis on TradingView, the analyst MasterAnanda acknowledged that XRP may appear due for a rebound, but the underlying signals tell a different story. “It looks like XRPUSDT can recover any minute now, but the correction might not be over,” the analyst noted.
Interestingly, despite the ongoing decline, bearish volume has been quite low. This shows that the selling may not be particularly strong, but also not challenged. This low-volume pullback suggests the market is drifting down due to a lack of buyers rather than intense selling pressure. Even so, the analyst noted that XRP has yet to reach a solid support level.
XRP Bullish Long-Term, But Can Crash Below $2
Although the short-term chart paints a troubling picture, MasterAnanda is confident in XRP’s bullish trajectory in the long term. However, the Fibonacci retracement levels marked on the chart show that the price has already dropped through the 0.382 zone and is hovering near the 0.236 line at $2.035. Beneath that, the low near $1.75 is the critical area to watch, which aligns with the analyst’s projected support zone.
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If XRP fails to hold above $2.00, it could slip toward that higher low. A red arrow drawn on the daily candlestick timeframe chart shows the trajectory of this decline. As such, XRP traders should prepare for the possibility of a strong downside unless a strong reversal happens before the crypto breaks below $2.
XRP’s bearish sentiment is gradually intensifying. If this correction continues unchecked, a retest of the $1.70 to $1.80 range may come sooner than expected. At the time of writing, XRP is trading at $2.13, down by 3.85% in the past 24 hours and 8.9% in the past seven days.
Featured image from Getty Images, chart from Tradingview.com
