{"id":12229,"date":"2025-05-19T14:41:04","date_gmt":"2025-05-19T12:41:04","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=12229"},"modified":"2025-05-19T14:41:04","modified_gmt":"2025-05-19T12:41:04","slug":"xrp-faces-potential-slump-to-2-following-bearish-chart-signal","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/05\/19\/xrp-faces-potential-slump-to-2-following-bearish-chart-signal\/","title":{"rendered":"“XRP Faces Potential Slump to $2 Following Bearish Chart Signal”"},"content":{"rendered":"

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Main points:<\/strong><\/p>\n

The XRP (XRP<\/a>) value is showing cautionary signals as a bearish technical formation unfolds on shorter timeframes, along with significant long liquidations and dropping open interest.<\/p>\n

XRP H&S pattern suggests a 14% price decline<\/h2>\n

XRP’s price movement has established a head-and-shoulders (H&S) configuration on its four-hour chart since May 9, indicating a probable downward shift.<\/p>\n

The head-and-shoulders pattern is a bearish reversal configuration that can indicate a trend shift. It consists of three peaks: a higher peak (head) and two lower peaks (shoulders).<\/p>\n

This pattern is confirmed when the price dips below the neckline (the line connecting the lows of the left and right shoulders), validating the formation and implying a potential sell indicator.<\/p>\n

In XRP\u2019s situation, the pattern was confirmed after a breach and close below the neckline at $2.33 during early Asian trading hours on May 19.<\/p>\n

If the price remains under the neckline, the XRP\/USD pair could descend further to $2.25 (the level of the 200-day simple moving average) and eventually reach the target of $2.00. This would amount to an overall decline of 14% from current prices.<\/p>\n

XRP\/USD four-hour chart. Source: Cointelegraph\/<\/em>TradingView<\/em><\/a><\/figcaption><\/figure>\n

As Cointelegraph noted<\/a>, a potential drop to as low as $2.00 is currently anticipated as bullish momentum has diminished.<\/p>\n

For well-known analyst Egrag Crypto, XRP’s price \u201cmust maintain\u201d the support at $2.30, aligning with the H&S neckline, to prevent a slide toward these targets.<\/p>\n

Related: <\/strong><\/em>XRP price trajectory to $3.40 remains intact \u2014 Here is the rationale<\/strong><\/em><\/a><\/p>\n

The analyst provided<\/a> a chart illustrating that a plunge beneath $2.30 could provoke a considerable sell-off, with the initial target approximately $2.15, dropping as low as $1.60 thereafter.<\/p>\n

Source: <\/em>Egrag Crypto<\/em><\/a><\/figcaption><\/figure>\n

XRP open interest declines $1 billion in 5 days<\/h2>\n

XRP open interest<\/a> (OI) has fallen by 18% to $4.49 billion over the past five days. This drop in OI indicates diminished trader confidence and liquidity, which tends to depress prices.<\/p>\n

XRP futures open interest. Source: CoinGlass<\/em><\/figcaption><\/figure>\n

The recent decline in XRP’s value has also caused liquidations over the past day, with long positions worth $12 million being forcibly closed, compared to just $1.4 million in shorts.<\/p>\n

Total XRP liquidations across all exchanges. Source: CoinGlass<\/em><\/figcaption><\/figure>\n

This reflects intensified selling pressure as bullish traders are compelled to liquidate at a loss, further dragging prices down.<\/p>\n

Notably, XRP\u2019s 3% decline in the last 24 hours is paired with a 70% surge in daily trading volume to $4.1 billion. An increase in trading volume during a price drop can be interpreted as growing bearish momentum or repositioning by crypto traders as they anticipate XRP\u2019s next move.<\/p>\n

This article is not a source of investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own analysis prior to making a choice.<\/p>\n