Key Insights:
- XRP has broken below the key support level of $2 for the seventh time, raising concerns about whether the price will crash this time.
- This recent breakdown isn’t just about losing support, it’s about breaking the neckline of a bearish head-and-shoulders pattern.
- Traders’ participation has skyrocketed, with $111M worth of bearish bets now placed.
XRP price prediction is one of the common topics investors and traders are looking for after a 7% price crash on Sunday.
The ongoing tariff war under the pro-crypto U.S. President Donald Trump’s administration has shaken the overall financial market — from traditional equities and forex to the crypto market.
Earlier on Sunday, XRP was poised for an upside rally due to its bullish inverted head and shoulders pattern, which had formed on the four-hour time frame.
However, this bullish outlook faded later in the day as the market turned deep red when Bitcoin (BTC) lost its $80,000 mark.
XRP Technical Analysis and Price Action
According to expert technical analysis and XRP price predictions, the asset appears bearish and could crash if it doesn’t control its price decline.
On the daily time frame, XRP broke below the neckline of a bearish head and shoulders pattern.
This neckline, or horizontal level at $2, has a strong history of price reversals.
Since November 2025, the asset has breached this level more than eight times and experienced price reversals, but this time, the sentiment is bearish.
XRP Price Prediction
Based on recent price action and historical data, whenever an asset’s price retests a certain level multiple times, it tends to weaken that level.
If this happens and XRP fails to recover and closes a daily candle below the $1.95 level, it could drop by over 39% to reach the $1.20 level in the future.
However, the XRP price prediction could turn neutral if the asset holds above the neckline or horizontal level at the $1.20 mark.
Meanwhile, there is another support level that XRP is currently getting from the 200 Exponential Moving Average (EMA) on the daily time frame.
This shows that XRP is currently trading above the 200 EMA, indicating that the asset remains in an uptrend despite the overall bearish market sentiment.
However, during this period, major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have also lost their 200 EMA.
Current Price Momentum
At press time, XRP was trading near $1.89 and had registered a price drop of over 5.5% in the past 24 hours.
During the same period, its trading volume skyrocketed by 515%, indicating heightened participation from traders and investors compared to the previous day.
This surge in trading volume includes the liquidation of traders’ positions, recent purchases by whales and investors, as well as activity from both long and short buyers and sellers.
$111 Million Worth of Bearish Bet, Price Crash Ahead?
Considering XRP’s recent price drops below key levels and the overall bearish sentiment, traders have begun betting on the short side, as reported by the on-chain analytics firm Coinglass.
Intraday traders are heavily overleveraged at $1.966 on the lower side (support), having built $12.35 Million worth of long positions.
Meanwhile, $2.173 is another overleveraged level where traders have built $111.16 Million worth of short positions.
This significant difference in the value of long and short positions highlights traders’ belief and strong interest in a potential price decline in the coming days.