How low can the price of XRP go after losing the $2 mark?

The price of XRP continues to extend its decline, losing 3% of its value in the past 24 hours and is currently trading at $1.94. The failure to maintain the critical support level at $2 has raised doubts about the altcoin’s recovery potential, causing investors to worry about the next bottom.

BiXRP price chart | Source: Coinphoton

XRP’s classic technical pattern points to the $0.88 level

On the weekly timeframe, the XRP/USD pair has formed a megaphone pattern (megaphone pattern), signaling the potential for a deeper correction in the near future. This pattern, also known as a broadening wedge, appears when prices continuously make higher highs and lower lows. According to technical analysis, if the price breaks below the lower boundary of the pattern, the market could witness a sharp drop.

For XRP, a confirmation signal will appear when the price breaches the lower trendline around $1.80. In theory, the target price for this pattern is $0.88, corresponding to a roughly 54% drop from current levels.

BiDaily XRP/USD chart | Source: TradingView

Before reaching this level, investors should pay attention to key support levels, including the 100-week Simple Moving Average (SMA) at $1.60 and the 200-week SMA at $1.05.

The RSI indicator on the weekly chart has dropped to 39 as of Friday, down from the extreme overbought level of 91 in December 2024, indicating selling pressure has been intensifying recently.

At the same time, XRP’s Net Unrealized Profit/Loss (NUPL) index has shifted from euphoria to denial, and anxiety is now emerging.

BiPrice performance vs. NUPL chart for XRP | Source: Glassnode

With over 41.5% of XRP investors currently at a loss, the risk of increased selling pressure is inevitable as many are forced to cut losses. Similar scenarios in 2018 and 2021 led to sharp corrections, raising concerns about a possible repeat in the coming weeks.

XRP’s realized losses climb to a seven-month high

According to data from TradingView, XRP fell to an intraday low of $1.81—the lowest price since April this year. Persistent selling pressure has forced many investors to sell at lower prices, reminiscent of previous major market downturns.

According to blockchain data platform Glassnode, XRP’s realized losses have surged to levels not seen since April. Specifically, the 30-day EMA of daily realized losses has soared to about $75 million per day.

This observation was recorded just minutes before XRP slipped below the $2 mark, marking a 50% drop from its multi-year high of $3.66 reached in mid-July.

According to Coinphoton, the lack of on-chain demand along with persistent profit-taking by whales may continue to amplify the risk of a sell-off for XRP in the near future.

Mr. Giao