XRP price dropped to $1.26 on Thursday, its lowest level in over 16 weeks, as a bearish technical setup suggested that selling pressure may extend into June.

Key takeaways:

  • XRP’s bear pennant pattern breakdown on the weekly chart targets $0.63
  • XRP social sentiment hit a three-week low
  • Net Unrealized Profit/Loss data shows rising fear, with more than 58% of holders underwater

Bear pennant breakdown underway

XRP had been displaying several potential bottoming signals, including a falling MVRV ratio and rising XRP Ledger activity, which suggested the price was extremely undervalued within the $1.40–$1.50 zone. The latest drop, however, has seen the XRP/USD pair fall below this zone and enter the breakdown phase of its bear pennant setup on the weekly chart.

XRP dropped below the pennant’s lower trendline at $1.35, opening the way for a deeper move toward the measured target of the chart pattern at $0.63 — a roughly 50% decline from recent levels.

Analyst Egrag Crypto said XRP became “structurally bearish” with the latest breakdown below $1.30, adding: “The bearish targets are $1.27, $1.1 and a possible capitulation wick toward $0.88.”

Technical analyst ChartNerd said that after breaching support at $1.30, the path is now clear for a drop toward $1 “sooner rather than later.”

XRP’s next major support level sits at $1.27. If that level breaks, the pair may slide to $1.11 and then test $1 support.

Sentiment turns negative

XRP’s social media sentiment has turned sharply negative over recent days, according to data from Santiment. The firm’s Positive/Negative sentiment indicator shows crowd fear at its highest level in three weeks, with the ratio dropping to just 1.1 bullish comments for every 1 bearish comment.

Santiment noted that this kind of fear and skepticism has historically acted as a contrarian signal for XRP’s price, observing that “when traders across social media become overly fearful, many weak hands have already sold, reducing selling pressure and creating conditions for a rebound.” Previous dips into the FUD zone were followed by price stabilization or bounces shortly afterward.

However, XRP’s Net Unrealized Profit/Loss (NUPL) metric is still oscillating between the capitulation and fear zones, suggesting traders remain cautious. With more than 58% of XRP holders currently underwater, there is still potential for further losses based on past cycles. Similar setups in 2018 and 2021 preceded sharp corrections, raising the possibility of comparable pullbacks over the coming weeks.

This article is intended for informational purposes only and does not constitute investment advice. All investments and trades carry risk.

Source: XRP Falls to 16-Week Low as Bear Pennant Points to Further Losses