XRP’s price has plunged below the critical $2 mark amid escalating global market tensions, with technical analysis suggesting more pain ahead for the sixth-largest cryptocurrency by market cap. The broader crypto market continues to reel from aggressive new U.S. tariff measures, sending risk assets into a tailspin.
Renowned crypto analyst Ali Martinez has identified a concerning technical development – a head-and-shoulders pattern formation that could signal further downside for XRP. This bearish technical setup typically precedes larger corrections, with Martinez projecting a potential drop toward the $1.30 support level.
Technical Analysis Points to $1.30 Target
The head-and-shoulders pattern, widely regarded as a reliable bearish reversal signal, suggests XRP could see a sustained move lower unless bulls can quickly reclaim the $2 level. The pattern’s measured move points to $1.30 as the next major support zone, coinciding with historical demand areas.
Currently trading at $1.86, XRP has already shed over 50% from its recent peak. The selloff aligns with broader crypto market outflows, as institutional investors reduce exposure to digital assets amid growing macroeconomic concerns.
Key Support Levels to Watch
- Current support: $1.86
- Critical resistance: $2.00
- Next major support: $1.50
- Pattern target: $1.30
Market Outlook and Trading Implications
For XRP to invalidate the bearish outlook, bulls need to push prices back above $2 and hold that level. A successful reclaim could trigger a relief rally toward $2.20. However, with global markets still processing the impact of new trade tensions, upside momentum may remain limited in the near term.
Frequently Asked Questions
What is causing XRP’s price decline?
The primary factors include broader market reaction to U.S. trade tariffs, technical selling following the head-and-shoulders breakdown, and general risk-off sentiment in crypto markets.
Could XRP recover from here?
While recovery is possible if bulls reclaim $2, the technical setup and macro environment suggest continued pressure in the near term.
What are the key levels to watch?
The critical resistance is $2.00, while major support levels exist at $1.86, $1.50, and the pattern target of $1.30.