XRP (XRP) prices have plummeted more than 35% since reaching a multi-year high of $3.40 in January. And the downtrend could deepen in April when new bear signals emerge.
Let’s explore these catalysts in detail.
XRP is approaching a classic technological collapse
XRP’s recent price action is flashing a classic bear inverted signal called “reverse cup and handle formation.”
The reverse cup and handle are bearish chart patterns that show that the buyer’s momentum fades after an uptrend. It resembles an upside-down teacup, where the “cup” marks a rounded decline, and after a short integration, a “handle” is formed.
The reverse cup and handle pattern is shown. Source: 5Paisa
Breaks below the handle support usually check the pattern and often lead to a drop equal to the cup height.
In the case of XRP, the rounded “cup” reached the top around March 19th and completed a curved reduction by the end of the month. Ongoing horizontal price movements between $2.05 and $2.20 form a “handle.”
XRP/USD 4-hour price chart. Source: TradingView
This failure below the horizontal integration range validates the bearish structure and opens the door of potential movement towards the $1.58 support area, as suggested by the measured moving projection shown in the chart above.
In other words, XRP could be reduced by more than 25% in April if the reverse cup and handle setup plays as intended.
Source: Peter Brandt
In addition to the sale risk, there is data from the Volume Profile Visible Range (VPVR) indicator. This shows the main support zone, the control (POC) of approximately $2.10-$2.20. Failures below this massive area can cause a more sharp decline as lower volume levels provide little historical support for recent history.
XRP/USD 4-hour price chart. Source: TradingView
Conversely, close proximity beyond the 50th 4-hour EMA (red line) near $2.14 can invalidate the reverse cup and handle pattern. Such a breakout could change momentum in the bull’s favour, potentially paving the way for a rally heading towards the 200th 4-hour EMA (blue line).
Related: Investor demand for XRP falls as bull markets stalls – Will traders defend $2 in support?
XRP Whale Flows Point to More Sales Pressure
As of April 5th, Cryptoquant’s 90-day moving average whale flow chart shows a sustained net spill from the largest owners of XRP since late 2024.
XRP Whale Flow 90-day moving average. Source: Cryptoquant
During the XRP sharp price boom in the fourth quarter of 2024, whale activity has been turned deep and negatively overturned, indicating that large entities are distributed to strength and selling local tops. This trend continues until 2025, with total whale flow still remaining at zero.
This difference between rising prices and lower whale support suggests weakening institutional convictions and raises concerns about the short-term price stability of XRP, unless accumulation resumes.
President Donald Trump’s global tarmac and the slight hawk response of the Federal Reserve to them has fueled risk sentiment that could reduce XRP and the wider crypto market in the coming quarter.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
