XRP Price Prediction: Urgent Warning of Potential 41% Plunge

Is XRP price going to crash? This is the question on many investors’ minds after a recent price drop. Over the past five days, XRP has seen a notable decline, dipping as low as $1.91 on June 22. This movement has sparked concerns and led analysts to examine the charts for potential future direction. Let’s dive into the factors suggesting XRP might face further downward pressure.

What Does Technical Analysis Say About XRP Price?

A key pattern emerging on the daily chart is the descending triangle. This formation, characterized by a flat support level and a downward-sloping resistance line, is often considered a bearish signal, especially after an uptrend. For XRP, this pattern has been developing since its rally in late 2024.

• The flat support level is currently around $2.00.
• The downward-sloping resistance line is near $2.22, where the 50-day and 100-day simple moving averages converge.
• A confirmed breakdown below the $2.00 support level could trigger a significant price move.

The price target for a descending triangle breakdown is calculated by taking the triangle’s maximum height and projecting it downwards from the support break point. For XRP, this technical analysis suggests a potential plunge towards $1.18, representing a roughly 41% drop from current levels. This aligns with previous analyses warning of a possible decline to $1.20 if the $2.00 support fails to hold.

Conversely, a clear move above the $2.22 resistance would invalidate this bearish structure, potentially positioning XRP for a rally, possibly towards $3.00.

Are XRP Derivatives Data Bearish?

Beyond chart patterns, derivatives data provides insights into market sentiment and positioning. Recent data for XRP leans bearish, reinforcing the potential for a deeper correction.

One key indicator is Open Interest (OI), which represents the total number of outstanding derivatives contracts. According to CoinGlass data, XRP’s OI has decreased significantly, falling by 36% from $5.53 billion on May 14 to $3.54 billion on June 23. Declining OI often suggests traders are closing positions, potentially anticipating lower prices. Historically, a drop in OI has correlated with price declines, as seen between January and February when a 74% drop in OI coincided with a 32% price decrease.

Another bearish signal comes from funding rates. XRP funding rates have recently turned negative, dropping to -0.0068% on June 23 from 0.0057% the previous day. Negative funding rates indicate that short position traders are paying long position traders, suggesting a market bias towards betting on lower prices.

Where Are the Key Liquidation Levels for XRP?

Liquidation heatmaps reveal price levels where large amounts of leveraged positions could be forced closed, potentially acting as price magnets. The Binance XRP/USDT liquidation heatmap highlights significant liquidity clusters.

• A major liquidity zone is identified near $1.75. This level has a high concentration of leveraged long positions.
• Breaking below $1.75 could trigger a liquidation cascade, forcing longs to sell and potentially driving the price further down.
• The next significant liquidity cluster is found near $1.60.

These liquidation levels suggest that if the $2.00 technical support breaks, $1.75 and then $1.60 are crucial levels to watch as potential stopping points or areas that could accelerate the move lower due to liquidation pressure.

Conclusion: Is XRP Going to Crash Again?

Based on current XRP technical analysis and derivatives data, the risk of a significant price decline is present. The descending triangle pattern points to a potential target of $1.18 if the $2.00 support breaks. Declining open interest and negative funding rates reinforce this bearish outlook by showing decreasing market enthusiasm and increasing bets against the price. Key liquidation levels at $1.75 and $1.60 could become relevant if downward momentum continues. While a breakout above $2.22 would invalidate these bearish signals, the current confluence of factors suggests caution is warranted for those wondering, “Is XRP going to crash?”. Remember, this analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research.