- XRP broke below $2-$2.20 support, forming a bearish head and shoulders pattern on the daily chart, signaling potential drop to 60 cents.
- Despite a rally after Trump’s crypto reserve news, XRP showed bearish divergence and repeatedly tested support, increasing breakdown likelihood.
- Analysts note XRP’s bearish structure since January and its potential to follow Bitcoin’s price action amid broader market uncertainty and tariff speculation.
XRP has recently broken below a key support zone of $2 to $2.20, suggesting further price decline. In the 1-day chart, the altcoin forms a “head and shoulders” pattern, which is typically a bearish reversal pattern that emerges after an uptrend and signals a potential shift to a downtrend.
Based on the chart formations, market analysts project a price potentially hitting as low as 60 cents. If true, this would effectively wipe out all the price gains the token experienced during a previous upward movement.
The head and shoulders pattern projects it sinking all the way back to 60 cents in a complete unwinding of its fall rally.
While the token’s price movement aligns with the current market uncertainty, the community speculates if this is a planned market correction.
Looking at the broader picture, XRP has navigated the downturn by consistently printing lower highs and lower lows, a classic bearish structure, since January 16. Despite that, the token has bounced back off a horizontal support zone several times, making this a key level to watch.
Later, the altcoin surged from $2.18 to $3 after Trump’s “Strategic Crypto Reserve” announcement, but that turned out to be a “False Breakout” as it got sold off quickly.
XRP Bearish Signals Mount Amid Bitcoin Uncertainty
Such price divergence between bullish news and price action raises a huge red flag. Since then, XRP has revisited the support level seven times, a signal that it is more likely to break. Another takeaway is Bitcoin’s price movement.
If BTC breaks down or fails to make higher lows similar to late 2023, XRP would also follow suit and drop lower. Conversely, a break above the bearish trendline could signal a new uptrend.
There is also speculation that Trump could exploit tariffs to crash markets, let the stock and crypto fall, triggering a rally in bonds. This is because cheaper bonds would help in refinancing $7 trillion in debt, a strategic but controversial tactic to turn economic pressure to his advantage.
Nevertheless, Traders should keep an eye on any emergency rate cuts by the Fed, Tariff news & political developments, Bond yields and sentiment indexes.
