TLDR
- XRP’s value fell to $1.41, reaching its lowest point since November 2024, coinciding with Trump’s election victory.
- Technical analysis charts reveal a bear pennant formation, suggesting a potential drop to $1.22.
- XRP breached the critical $1.60 support level, which had previously held firm during the April sell-off.
- Futures open interest has decreased from $4.55 billion on January 6 to $2.61 billion, potentially signaling an upcoming trend reversal.
- Spot buying volume has significantly declined since early January, indicating reduced investor interest.
XRP is currently trading at $1.43, having touched a low of $1.41 over the weekend. This represents the token’s lowest valuation since November 2024.
This downturn mirrors the broader crypto market’s weakness, stemming from Bitcoin’s price struggles. XRP is utilized by Ripple, a fintech company, for facilitating cross-border transactions.
On Saturday, the token experienced an approximate 14% decline, falling from a peak of $1.75 to $1.50 within that trading period.
For the first time since November 2024, XRP breached the $1.60 support level, a price point that had previously served as a demand zone during the market sell-off in April.
Technical charts indicate that XRP has developed a bear pennant pattern on the four-hour timeframe. The token broke below the pennant’s lower trendline on Tuesday.
Bearish Pennant was formed on is forming a bearish pennant on the 1H timeframe, indicating a continuation of the bearish sentiment.
Consider entering short at $1.53 with a stop-loss at $1.62 and a target of $1.39 to capitalize on this MAJOR bearish setup.
— Crypto AI by Klondike (@KlondikeAI)
Following this breakdown, the price briefly recovered to retest the trendline, which then acted as resistance, occurring around the $1.58 mark.
The projected target for this bear pennant pattern is $1.22, suggesting a potential 23% decrease from current price levels.
Reduced Trading Activity Signals Weakening Demand
The 90-day Spot Taker Cumulative Volume Delta reveals a sharp reduction in buy orders since early January. This metric monitors whether market orders are predominantly initiated by buyers or sellers.
While buy-side pressure had been dominant in the order book since November 2025, demand has diminished over the past 30 days, according to data from CryptoQuant.
Historically, significant declines in spot CVD have been followed by price drawdowns ranging from 28% to 50% within weeks. The current decrease in buying activity points to a waning enthusiasm among investors.
Pseudonymous analyst AltCryptoGems commented that XRP’s January recovery to $2.40 was a “fakeout.” The analyst asserted that the downtrend persists as the price established a new lower low.
Oh no, gave us another fluke. That structure break was a fakeout.
Price formed a fresh lower low, so the downtrend remains intact and we are on the verge of a disastrous collapse in a huge no-support zone.
We need a miracle to save this!
— Sjuul | AltCryptoGems (@AltCryptoGems)
Trader Alex Clay indicated that after breaching the $1.60 support line of a double bottom pattern, the path is clear for a decline towards $1.00 or even lower. Charts reveal limited support between the current price and the psychological $1.00 level.
Futures Market Presents Mixed Signals
XRP futures open interest has fallen to $2.61 billion as of Wednesday, a decrease from $4.55 billion on January 6.
When open interest decreases concurrently with falling prices, it can suggest a weakening bearish trend. This pattern occasionally precedes a potential shift in the trend.
The reduction in open interest might offer an opportunity for bulls to drive the price towards the $1.85 resistance level, which had acted as support for much of 2025.
Options trading activity on Deribit indicates an increasing demand for protection against downside movements. Block flows over the past 24 hours showed interest in put spreads and strangles.
Put spreads are bearish strategies designed to profit from price declines. Strangles are wagers on increased volatility, regardless of direction.
XRP’s next significant support level is approximately $1.48, representing the aggregated realized price. A breach of this level would result in losses for the average holder.
XRP initially surged following Trump’s election victory in November 2024, driven by expectations of pro-crypto policies. The token reached its peak at $3.65 in July of last year before entering a prolonged downtrend.