In a dramatic twist for XRP enthusiasts, the cryptocurrency’s recent surge, which saw its price catapult by over 50% in just a month, might be teetering on the edge of a pullback. Currently trading around $2.47, XRP has formed a “double top” pattern—a classic harbinger of potential downturns in the trading world. Market analysts are scrutinizing this pattern, which suggests that the euphoria could be short-lived unless buyers rally to break past the $2.65 resistance.
Double Trouble: The Double Top Dilemma
XRP’s ascent to $2.65 was met with formidable resistance, forming what traders call a “double top.” This pattern, characterized by two peaks with a neckline around $2.47, often signals a trend reversal. With XRP slipping below this neckline, the whispered word on the street is “bearish.” If the pattern holds, traders could see prices dipping to $2.30, with the bearish trend gaining more steam if resistance at $2.65 isn’t broken.
Adding to the bearish sentiment is the breakdown from a rising wedge pattern, which further suggests a shift from bullish to bearish momentum. The price’s flirtation with the 50-4H exponential moving average (EMA) only heightens tensions. Breaking below this critical support could see XRP plummet by another 20%, potentially spiraling down to $1.94.
Traders in Denial? NUPL’s Ominous Signal
The Net Unrealized Profit/Loss (NUPL) metric has entered the “Belief-Denial” phase, a zone where traders often cling to hope despite fading momentum. Historical data paints a cautionary tale—this zone preceded significant corrections in 2018 and 2021. Could history repeat itself? Analysts are wary, noting that this metric’s current trajectory could foreshadow further declines. As explored in our recent coverage of XRP traders predicting new all-time highs, market sentiment can shift rapidly with developments like potential ETF approvals.
However, not all is doom and gloom. While short-term charts flash warning signs, long-term projections still maintain a bullish outlook. Some analysts speculate that, should XRP break free from its multimonth falling wedge pattern, a rally towards $3.69 by June isn’t off the table. Yet, caution is warranted: failure to sustain support at critical EMA levels could invalidate the bullish setup, dragging prices down to $1.75.
Long-Term Horizon: The Bullish Case
Despite the looming specter of a short-term pullback, XRP’s long-term charts tell a story of potential. Symmetrical triangle patterns and Fibonacci extensions suggest targets as high as $5.24 and even a speculative $17 down the line. It’s a tale of two charts, with short-term trepidation juxtaposed against long-term optimism. For a deeper dive into strategic moves by Ripple, see our coverage of Ripple’s offer for Stablecoin Issuer Circle, which could have significant implications for XRP’s future.
As the crypto community watches with bated breath, the key question remains: Will XRP’s rally fizzle out, or is this merely a pause before another upward leg? With market dynamics in a constant state of flux, traders are advised to keep a close eye on technical levels and be prepared for volatility.
In the unpredictable world of cryptocurrency, nothing is set in stone. Whether XRP’s price trajectory continues its upward march or succumbs to bearish pressures, one thing is certain: the coming weeks will be pivotal. As always in crypto—expect the unexpected.
Source
This article is based on: Is the XRP price rally over for now?
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
