Ripple [XRP] – Could THIS bearish pattern drive prices to $2.60?

Key Takeaways

XRP shows a bearish Inverted Cup and Handle Pattern near $2.95. While outflows suggest dip-buying, high short interest and falling volume hint at a deeper correction toward $2.60 if support fails.

Ripple [XRP] is flashing signs of a deeper pullback, with an Inverted Cup and Handle Pattern forming on the daily chart. The structure, coupled with a sharp drop in volume, hints at potential downside.

The asset has already dropped nearly 20% from its July highs, and sentiment continues to tilt bearish—unless bulls defend the $2.95 support.

At press time, XRP hovered near $2.937, with a mild 0.70% gain over the past 24 hours. While the price has stayed pinned to this level for four straight days, participation has thinned out.

According to CoinMarketCap, 24-hour trading volume has dropped 17%, signaling a retreat in trader engagement. Naturally, that reflects a wait-and-watch stance amid the bearish setup.

XRP technical analysis and upcoming level

AMBCrypto’s technical analysis revealed that XRP is on the verge of a significant price decline. On the daily chart, the asset has formed a bearish Inverted Cup and Handle pattern, which suggests a potential dump ahead.

If bulls fail to defend this level, the price could slide by nearly 13%, targeting the next support zone near $2.60.

Ali Martinez on X (formerly Twitter) also pointed to $2.55 and $2.40 as key levels to watch, reinforcing the likelihood of further downside if $2.95 gives way.

Despite the bearish structure, one indicator hasn’t flipped yet. The Supertrend on the daily timeframe remains green and trailing below price, signaling that the broader trend still favors buyers – at least for now.

$88M in Exchange Outflows

On-chain activity shows a different story. According to CoinGlass, over $88 million worth of XRP has exited exchanges in the past 48 hours.

These Exchange Outflows suggest that long-term holders may be accumulating during the price dip, betting on a rebound.

Traders build shorts near support

Meanwhile, traders continue to follow the market sentiment, appearing to strongly bet on the bearish side.

CoinGlass data revealed that for Ripple (XRP), the major liquidation levels are at $2.89 on the lower side and $3.07 on the upper side.

Additionally, at these levels, they have built $62.72 million worth of long positions and $113.64 million worth of short positions.

Combining these metrics, it appears that the short-term trend is bearish, while the long-term outlook remains bullish.