Bearish Signals Emerge for XRP

Ripple [XRP] is sending alarming signals of a potential downturn as an Inverted Cup and Handle Pattern emerges on its daily chart. Currently hovering around $2.93, XRP’s performance could face a critical test if support fails to hold, with analysts predicting a possible drop to $2.60.

The Current State of XRP

XRP has already declined nearly 20% from its summer highs, revealing a bullish sentiment shift toward the bears. Despite a modest gain of 0.70% over the last day, trading volume reflects caution, dropping by 17% as traders adopt a wait-and-see approach.

Technical Analysis Points to Danger Ahead

Technical indicators from AMBCrypto suggest XRP could soon take a significant dive. This bearish chart pattern—if the bull support at $2.95 fails—forecasts a possible steep decline of about 13%, eyeing crucial support levels at $2.55 and $2.40 below.

Mixed Market Signals

Interestingly, the Supertrend indicator remains green, indicating buyers might still hold sway in the broader market context—for now. This adds a layer of complexity to the situation, as short-term pessimism clashes with long-term bullish potential.

Huge Exchange Outflows Suggest Accumulation

In a twist, over $88 million worth of XRP has exited exchanges in just 48 hours, signaling that long-term holders may be seizing the opportunity to buy during this dip, betting on a rebound.

Traders Taking Positions Amid Uncertainty

As the market sentiment shifts, traders are heavily betting on short positions, with significant liquidation levels sprouting at $2.89 below and $3.07 above. Data from CoinGlass shows a cluster of $62.72 million in long positions against a staggering $113.64 million in shorts.

The Outlook: Bearish or Bullish?

In summary, while the short-term trend leans bearish, the long-term implications remain bullish depending on market movement. If XRP can defend its current support, it might dodge the impending crisis and create a fresh opportunity for rebound.