Key takeaways:
XRP price relies on $2.75 support, with a potential decline to $2.07.
Increasing NUPL indicates heightened profit-taking, suggesting $3.18 was the recent peak.
Some analysts maintain that XRP’s long-term outlook is bullish, setting price targets above $5.
XRP (XRP) experienced a decline on Monday, falling 5% in the past 24 hours to a trading price of $2.80. The failure to sustain above $3 raises doubts about the altcoin’s upward trend, at least in the short term.
Classic XRP pattern targets $2.07
On the daily candle chart, XRP is forming a classic descending triangle pattern, a bearish continuation marked by a downward-sloping resistance line and a flat support line.
Related: Ripple vs. SEC: How the lawsuit strengthened XRP’s narrative
A daily close below the triangle’s support line could initiate a further sell-off, with a technical target near $2.07, determined by adding the triangle’s height to the potential breakout level around $2.75.
This scenario would indicate a 26% decline from the current price.
XRP is presently trading below the 50-day simple moving average (SMA, the yellow wave) and 100-day SMA (the red wave), which adds to the bearish sentiment.
The 200-day SMA at $2.52 may offer support for bulls and help prevent a deeper decline towards $2.
The relative strength index (RSI) has decreased from 50 to 39 over the last 24 hours, suggesting growing downward pressure.
XRP’s Net Unrealized Profit/Loss (NUPL) has also shown concerning signals. Currently, the metric sits in the 0.5–0.6 range, a level historically associated with local peaks.
With over 94% of supply in profit at present prices, there is a chance of increased selling pressure. Similar conditions in 2017, 2021, and January 2025 were followed by sharp corrections, indicating the potential for similar pullbacks in the coming days.
Is XRP price in a technical correction?
Despite the recent pullback, analysts are confident that XRP bulls maintain control on longer time frames.
As Cointelegraph reported, the price remains optimistic on the weekly candle chart, featuring a bull flag established since the November 2024 rally, which suggests XRP could reach as high as $15.
Identifying a similar pattern, crypto analyst CryptoBull predicted that XRP could surge to $5 in October.
“While short-term trends are worth monitoring closely, the long-term trends remain clear,” remarked analyst Egrag Crypto in a Monday post on X, suggesting that the current pullback could just be a technical correction.
He shared a chart indicating the formation of an ascending triangle on the monthly chart, with an XRP price target of $27.
In a previous analysis, XForceGlobal asserted that XRP’s long-term outlook remained bullish, with Elliott Wave analysis forecasting a cycle peak above $20 for XRP.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
