Key takeaways:
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XRP validates a bearish descending triangle, risking a 25% drop to $1.55.
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A bearish divergence from the weekly RSI factors to rising downward momentum.
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Low each day lively addresses sign muted community exercise and liquidity, amplifying XRP sell-off danger.
XRP worth traded 11% under its worth every week in the past, and a convergence of a number of information factors indicators a deeper correction towards $1.55.
XRP descending triangle hints at a forty five% worth drop
The XRP (XRP) worth chart confirmed a descending triangle sample on its eight-hour chart since dropping below the $3 psychological stage in October.
A descending triangle chart pattern — characterised by a flat assist stage and a downward-sloping resistance line — resolves when the worth breaks under the flat assist stage and falls by as a lot because the triangle’s most peak.
Associated: XRP ‘structurally fragile’ as 41.5% of supply at a loss
The XRP/USD pair confirmed the descending triangle when it dropped under the assist line of the sample at $2.20 on Monday.
The bulls are preventing to maintain XRP above the $2 assist. A breakdown of this stage will possible see XRP worth fall towards the measured goal of the triangle at $1.55 by the top of November, representing a 25% decline from present worth ranges.
XRP’s descending triangle breakdown echoes an earlier evaluation which warned of a potential decline to as little as $1.61 if key assist ranges don’t maintain.
The Glassnode distribution heatmap shows that a big cluster of provide sits between $2.38 and $2.40 (embraced by the 100-day SMA and the triangle’s resistance line), the place practically 3.23 billion XRP have been acquired. This marks an space of stiff resistance for XRP, including to the tailwinds.
XRP’s bearish divergence
XRP’s draw back is supported by a bearish divergence between its worth and the relative strength index (RSI).
The weekly chart under reveals that the XRP/USD pair rose between November 2024 and July 2025, forming increased highs inside a rising channel. Nevertheless, throughout the identical interval, its weekly RSI declined to 68 from 92, forming decrease highs, as illustrated within the weekly chart under.
A divergence between rising costs and a falling RSI normally signifies weak spot within the prevailing uptrend, prompting merchants to promote extra at native highs as profit-taking intensifies and purchaser exhaustion units in.
The RSI has since dropped to 39, suggesting that the market circumstances nonetheless favor the draw back.
The chart above additionally reveals that XRP faces stiff resistance from the 50-week SMA at $2.32. Overhead stress from this stage might proceed suppressing XRP’s worth over the subsequent few weeks.
Declining XRP Ledger community exercise
Community exercise on the XRP Ledger has remained muted during the last 4 months. Onchain information from Glassnode reveals that the daily active addresses (DAAs) on the community are actually far under the excessive of 577,000 DAAs, recorded on June 14.
With solely about 44,000 DAAs on the time of writing, consumer transactions have declined considerably, presumably signaling lowered curiosity or a insecurity in XRP’s near-term outlook.
New addresses have additionally dropped to the present 4,000 each day from 13,500 on Nov. 10, suggesting declining community adoption and consumer engagement.
Traditionally, declines in community exercise sometimes sign upcoming worth stagnation or drops, as decrease transaction quantity reduces liquidity and shopping for momentum.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.
