Key takeaways:
The price of XRP relies on the $2.75 support level, with a potential decline towards $2.07.
An increase in NUPL indicates more profit-taking, suggesting $3.18 was the recent peak.
Some analysts maintain a bullish macro outlook for XRP, eyeing targets above $5.
XRP (XRP) experienced a 5% decrease on Monday, trading at $2.80 after failing to stay above $3, casting doubt on its short-term uptrend.
Classic XRP pattern targets $2.07
The daily candle chart reveals XRP forming a classic descending triangle pattern, a bearish continuation structure characterized by a downward-sloping resistance line and a flat, horizontal support line.
Related: Ripple vs. SEC: How the lawsuit strengthened XRP’s narrative
A daily close below the triangle’s support line could trigger a new sell-off, with a technical target near $2.07 derived from the triangle’s height added to the possible breakout point around $2.75.
This scenario would represent a 26% decrease from the current price.
XRP is trading below both the 50-day simple moving average (SMA, the yellow wave) and the 100-day SMA (the red wave), reinforcing a bearish sentiment.
The 200-day SMA at $2.52 may provide some support for bulls, potentially preventing a significant downturn towards $2.
The relative strength index (RSI) has declined from 50 to 39 in the last 24 hours, indicating a build-up of downward momentum.
XRP’s Net Unrealized Profit/Loss (NUPL) has raised alarms, currently situated in the 0.5–0.6 range, a historically notable zone for local peaks.
With over 94% of the supply in profit at the current levels, increased selling pressure is likely. Similar situations in 2017, 2021, and January 2025 led to sharp corrections, raising concerns about potential pullbacks in the coming days.
Is XRP price in a technical correction?
Despite the drop, analysts believe that XRP bulls still hold the advantage on higher time frames.
According to Cointelegraph, the weekly candle chart remains bullish, featuring a bull flag established during the November 2024 rally, indicating XRP could potentially reach $15.
Observing a similar pattern, crypto analyst CryptoBull predicts that XRP could surge to $5 in October.
“While lower time frames are worth keeping an eye on, the higher time frame trends remain distinctly clear,” noted analyst Egrag Crypto in a recent post on X, suggesting that the current pullback might simply be a technical correction.
He shared a chart depicting the formation of an ascending triangle on the monthly chart with a price target of $27 for XRP.
In earlier analysis, XForceGlobal stated that XRP’s macro outlook remains positive, with Elliott Wave analysis anticipating a cycle top exceeding $20 for XRP.
This article does not contain investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before proceeding.
