XRP is trading at $2.17, the same price it had at the start of the year. However, beneath this steady number, there are signs that its price could drop significantly. Charts show a pattern that often leads to falling prices, and the number of people using XRP has dropped sharply. Big holders are also selling some of their XRP, and investors are losing interest in XRP funds. In this article, we look at the key signs and data that suggest XRP might face a tough time ahead.
XRP Holds $2.17 as Bears Gain and Activity Drops
XRP was trading at $2.17 on the 6th of June, matching the price it held at the start of the year on January 1. While this might seem stable on the surface, a clear bearish formation is taking shape on the charts—raising concerns of a potential correction that could cause the token to drop by as much as 75%, possibly reaching $0.52.
Underlying network data paints a worrying picture. The number of active XRP addresses has dropped sharply, falling from around 612,000 in March to just 16,000 today—indicating a major decrease in user engagement. On top of that, whale behavior suggests growing uncertainty. Wallets holding between 10 million and 100 million XRP have collectively reduced their holdings to 7.53 billion, down from 7.8 billion just last week.
Teucrium XRP ETF Assets Decline
The Teucrium 2x Long Daily XRP ETF, which was recently launched, appears to be experiencing a decline in investor interest. Its total assets under management have decreased from $110 million in May to $102 million as of the latest reports. This drop suggests that the fund may be losing momentum, possibly reflecting caution among traders or shifting market conditions impacting XRP-related investment products.
XRP Price Performance and Recent Developments
XRP reached its peak price of $3.40 in November, shortly after the election of Donald Trump. Since that high point, the token has experienced a significant decline of approximately 38%, currently trading near $2.17. This downward movement has occurred despite several positive milestones for XRP, including the resolution of the SEC’s legal case against Ripple, the strategic acquisition of Hidden Road, and the submission of multiple ETF applications aimed at increasing institutional exposure. These developments have yet to translate into sustained upward momentum in XRP’s price.
Bearish Signals and Chart Patterns
From a technical perspective, XRP has recently fallen below its 50-day Exponential Moving Average (EMA), a key indicator suggesting that bearish forces are dominating the market. Additionally, XRP has formed a descending triangle chart pattern. This pattern is characterized by a horizontal support line around $1.96, which has held firm on multiple occasions since November, and a descending resistance line that connects the lower highs made on January 16, March 1, and March 13.
Descending triangles are commonly seen as bearish continuation patterns, often leading to a breakout to the downside. Based on the height of the triangle, the expected price target following a breakdown would be a 42% drop from the support level of $1.96, potentially pushing XRP down to approximately $1.13.
Final Thoughts
Although XRP’s price appears stable at $2.17, multiple warning signs suggest challenges ahead. Key indicators such as declining user activity, reduced holdings by large investors, and weakening interest in XRP-related funds point to growing uncertainty. Technical analysis reinforces this outlook, with bearish chart patterns signaling a possible significant price drop. Despite positive news and developments, XRP faces pressure that could lead to a notable correction shortly.
