Why is XRP Price Down Today? 40% Crash Ahead?

Ripple's XRP has struggled this past week, underperforming compared to gains seen in major cryptocurrencies like Bitcoin, Ethereum, BNB, and SOL. Currently priced at $2.37, XRP has dropped over 5% in the last seven days, with a significant 3.4% slide within the past 24 hours, according to data from Coingecko.

This decline has interrupted XRP’s rally, which began on March 19 after the news about Ripple’s settlement with the SEC. As part of the agreement, Ripple will pay $50 million of the original $125 million fine levied by the SEC. Additionally, the SEC plans to ask the court to lift the earlier injunction against Ripple, although the final steps in the process are still underway.

XRP's trading volume has also fallen sharply, dropping from over $4 billion to $2.9 billion in the past week—a decrease of more than 39%.

XRP/USDT Chart Analysis

Analyzing the daily XRP/USDT chart reveals two concerning bearish patterns: a head and shoulders (H&S) formation and a descending triangle. Both suggest potential downside risks for XRP. While an H&S pattern is often dependable for predicting price movements, it could still be invalidated if XRP manages to break above $3.

The left shoulder formed in late December 2024, with XRP peaking near $2.80 before retreating. The "head," which is the highest point of the pattern, reached approximately $3 in early January 2025, followed by another drop. Since February, XRP has tested the $2 region at least three times, rebounding quickly from this key support level, as shown by the candle wicks. 

Currently, XRP is trading above the 20-day moving average (MA). However, a pattern of lower highs, declining trading volumes, and resistance around the upper trendline of the descending triangle suggest caution is warranted for buyers.

If XRP fails to hold the $2 support level during its next retest, there’s a possibility of a 40% decline, potentially sliding to $1.20. However, the $1.76 zone, which aligns with the 200-day moving average, may offer some support for buyers.

A confirmed completion of the bearish pattern could signal a longer-term downward trend for XRP. This would indicate that sellers are gaining control after buyers failed to sustain higher price levels.

Based on the current market structure, it’s still a bit early to predict heavy declines for XRP. However, the lower highs and inverse movement against the general market trend should be a cause for concern. XRP would need to quickly reclaim the $2.50 levels, an area that will push it above the upper triangle trendline and crucial resistance, shifting momentum in favor of buyers.