🔥 Key Takeaways
XRP Faces Bearish Pressure as Historical Signal Reappears
XRP is flashing a concerning signal from its cost-basis metric, which last triggered a staggering 68% price drop. The metric, which tracks the average acquisition price of XRP held by investors, suggests that the asset is entering a high-risk zone where sellers may dominate. This pattern mirrors the conditions seen before previous steep declines, raising alarms among traders.
Technical Weakness and ETF Outflows Compound Risks
The bearish signal coincides with a deteriorating technical structure for XRP. Key moving averages are turning into resistance, and trading volume has declined, indicating a lack of bullish conviction. Additionally, spot ETF outflows have accelerated, further pressuring the market. Analysts warn that if XRP fails to hold critical support levels—particularly around $0.50—a deeper correction could unfold.
Can Bulls Defend Critical Support?
The next few trading sessions will be pivotal for XRP. Bulls must defend the $0.50-$0.55 zone to prevent a cascading sell-off. If this level breaks, the next major support lies near $0.40, a 20% drop from current prices. On-chain data shows that large holders (whales) have been reducing exposure, adding to the downward pressure. However, a rebound in Bitcoin or positive regulatory developments for Ripple could provide relief.
For now, traders are advised to monitor price action around key levels and watch for shifts in market sentiment. The coming days will determine whether XRP can avoid a repeat of its past 68% plunge.
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