XRP Faces Potential Decline Amid Bearish Signals

According to Cointelegraph, XRP's price has experienced a significant decline of over 35% since reaching a multi-year high of $3.40 in January. The cryptocurrency's downtrend may continue into April as new bearish indicators emerge. A key technical pattern, known as the inverse cup and handle formation, is signaling a potential reversal. This pattern, which resembles an upside-down teacup, indicates waning buyer momentum following an uptrend. The "cup" represents a rounded decline, while the "handle" forms after a brief consolidation period. Typically, a break below the handle's support confirms this bearish pattern, often leading to a decline equal to the cup's height. In XRP's case, the rounded "cup" peaked around March 19 and completed its decline by the end of the month. The current sideways price movement between $2.05 and $2.20 forms the "handle." A breakdown below this range could validate the bearish structure, potentially leading to a move toward the $1.58 support area. This scenario suggests that XRP could decline by over 25% in April if the inverse cup and handle setup unfolds as expected. Adding to the sell-off risk is data from the volume profile visible range (VPVR) indicator, which highlights a key support zone around $2.10–$2.20. A breakdown below this high-volume area could trigger a sharper drop, as lower volume levels below have historically offered little support. Conversely, a strong close above the 50-period 4-hour EMA near $2.14 could invalidate the bearish pattern, potentially shifting momentum in favor of the bulls and paving the way for a rally toward the 200-period 4-hour EMA around $2.28. Additionally, CryptoQuant's 90-day moving average whale flow chart indicates sustained net outflows from XRP's largest holders since late 2024. During XRP's price surge in Q4 2024, whale activity turned negative, suggesting large entities were selling at local tops. This trend has persisted into 2025, with total whale flow remaining below zero, indicating weakening institutional support. The divergence between rising prices and declining whale support raises concerns about XRP's near-term price stability unless accumulation resumes. Furthermore, U.S. President Donald Trump's global tariffs and the Federal Reserve's slightly hawkish response have dampened risk sentiment, potentially impacting XRP and the broader cryptocurrency market in the coming quarters. This article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.