XRP (XRP) recently experienced a significant bounce of nearly 30% after hitting a four-month low of $1.61. This surge was attributed to various market factors, including rising tariff tensions. However, despite this short-term recovery, technical analysis and on-chain signals are now pointing towards a potential deeper correction for the cryptocurrency.

One of the key technical patterns signaling a bearish reversal for XRP is the formation of an inverse cup-and-handle pattern. This pattern typically indicates a potential price drop of around 40% in the near future. The inverse cup-and-handle pattern forms when the price rounds off in a curved descent (cup) followed by a brief consolidation phase (handle), all above a common neckline support level. As of April 19, XRP had entered the handle-formation phase, with a potential downside target of around $1.24, which is approximately 40% below its current price.

Furthermore, veteran trader Peter Brandt has suggested that XRP's market cap could drop by 50% in the coming weeks, adding to the bearish outlook for the cryptocurrency. Additionally, historical on-chain data for XRP indicates that the cryptocurrency's price behavior is following patterns seen in previous market cycles, suggesting a potential correction of around 50% from its current levels.

The current realized price for XRP is around $1, which aligns with its 200-week EMA at $0.81, a level that may serve as a bear market target. Moreover, over 80% of XRP addresses are currently in profit, a metric that has historically signaled market tops and potential pullbacks.

Despite earlier optimism, sentiment around XRP hitting new all-time highs above $3.55 is declining, with prediction market data from Polymarket showing reduced confidence in this milestone being achieved before 2026. The broader decline in risk appetite in the crypto market in April, driven by escalating global tariff tensions, has also contributed to the fading momentum for XRP and other cryptocurrencies.

It is important to note that this article does not provide investment advice or recommendations. As with any investment or trading decision, there are inherent risks involved, and readers are advised to conduct their own research and due diligence before making any financial decisions.

Source: https://cointelegraph.com/news/xrp-revisit-1-realized-price-charts-bearish-picture?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound