- XRP’s price is supported by the 21-day and 33-day SMAs, helping maintain upward momentum despite market fluctuations.
- Over 70% of XRP’s total value comes from holders who bought between late 2024 and early 2025, raising concerns.
- XRP’s price struggles within a falling wedge pattern, with potential for a 25% drop toward the 50-week EMA at $1.76.
Although XRP has been looking positive, current trends and analysis show that a price decline could soon happen. Egrag has shared their thoughts on the main support points for token. Upward movement in the cryptocurrency is supported by both the 21-day SMA on the 5-day chart and the 33-day SMA on the 3-day chart.
Over the past five days, the 21 SMA has helped to maintain a stable price. It has been very helpful in stopping big drops in the market. The 33 SMA remains very important on the 3-day timeframe, supporting a bullish trend for XRP. Keeping a positive trend in cryptocurrencies is made possible by these moving averages.
Source: X
XRP’s Market Concerns
Still, along with the positive improvement in technology, XRP’s market setup is of great concern. Glassnode data shows that around 70% of coin’s total value has come from holdings accumulated between late 2024 and early 2025. This means that a large group of token holders started buying after January 2025, when token reached its highest price of about $3.40.
An increase in short-term holders in the market is frequently followed by market price swings. With these newer investors, sensitiveness to changes in prices can sometimes force quick sell-offs when markets tumble. In the past, similar situations in the market have caused big falls in prices. In the periods between 2017 and 2021, capital on coin rose due to short-term holders and soon dropped by almost 95% and 80%.
Source: X
XRP’s Falling Wedge Pattern
The token price has been trading within a falling wedge on the weekly chart. On May 26, the cryptocurrency had a difficult time crossing the upper trendline of the wedge. A lack of new highs suggesting this could start a brief period of decreases and may drive the price toward the support line.
The bottom line of the wedge forms near the 50-week Exponential Moving Average (EMA) at $1.76. In other words, if this happens, the price could drop by 25%. Because of these levels, traders and investors should remain on the lookout for a possible upcoming large correction.
Source: TradingView
Although XRP is holding up at main technical supports, new short-term investors and past market trends may bring price volatility. Individual traders and professionals should pay attention to any upcoming market trends and prepare for any coming corrections.
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