Over the past week, the XRP market has been mostly bearish. The altcoin’s price dropped more than 5% as the broader market struggled. Looking at the bigger picture, XRP has been stuck between $1.29 and $1.55 since February. But recent technical signals on the daily chart suggest a sell-off may be coming, which could end this month-long range and push prices even lower in this bear market.
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XRP Break Below Symmetrical Triangle Tips Short-Term Loss
In trading analysis, a symmetrical triangle forms when the price creates a series of lower highs (a descending resistance line) and higher lows (an ascending support line). These two lines meet, forming a triangle. This pattern usually shows uncertainty and tightening in the market, as buyers jump in earlier each time (higher lows) and sellers step in sooner each time (lower highs). In a post on X on May 23, Ali Martinez pointed out that XRP has broken out of a symmetrical triangle on its daily chart. The altcoin recently fell below the rising trendline of this pattern, which started in January. This means XRP is now under a key support level and could drop further. According to the analyst, if selling pressure picks up, XRP could fall to around $1.14—a 16.17% loss from its current price.
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XRP Market Glance – Whales Step Out
Interestingly, XRP’s price drop and this bearish signal come alongside another worrying trend. Martinez noted in a separate post that XRP whale activity has dropped sharply. Over the last nine days, the number of large transactions (over $1 million) fell from 157 to 67—a 57.3% decline. The analyst explained that this often means whales are stepping back as the market enters a compression phase, where volatility is expected to decrease. During this time, the current price range becomes accepted, and the market builds clearer support and resistance levels. There’s also an increase in limit orders, with liquidity deepening on both sides to form a more mature order book. However, compressions always lead to expansion, and the direction depends on liquidity and whether these whales return as buyers or sellers.
At the time of writing, XRP is trading at $1.35, up 1.1% in the last day. Meanwhile, its daily trading volume has risen 4.23% to $1.96 billion.
Featured image from Pexels, chart from TradingView
Frequently Asked Questions
Here is a list of FAQs about the reported negative breakout for XRP covering both beginner and advanced perspectives
BeginnerLevel Questions
1 What does negative breakout mean for XRP
It means the price has fallen below a key support level signaling that the price is expected to keep dropping
2 Why is the price expected to drop to 114
An analyst looked at the chart patterns and believes that after the breakout the next logical bottom or support level is around 114
3 Should I sell my XRP right now
Thats a personal decision This is just one analysts prediction News like this can create fear but its smart to do your own research or talk to a financial advisor before making a move
4 Is this prediction guaranteed to happen
No Crypto price predictions are never guaranteed Market conditions news or big buy orders can change the price at any moment
5 What is a support level
Think of it like a price floor If the price drops and hits that floor it often bounces back up A negative breakout means the price broke through that floor
AdvancedLevel Questions
6 What specific chart pattern triggered this prediction
The analyst likely identified a descending triangle head and shoulders or a breakdown from a consolidation range These patterns often suggest further downside
7 How does this prediction account for broader market trends
A good analysis usually factors in Bitcoins dominance If Bitcoin drops XRP often follows The 114 target likely assumes no major positive catalyst arrives to reverse the trend
8 What is the volume confirmation for this breakout
A valid negative breakout is usually confirmed by high trading volume If volume is low during the drop it could be a false breakdown
9 Could 114 be a good entry point for buying the dip
Possibly Many traders watch for a double bottom or a bounce at that level If the price holds at 114 and volume increases it might be a support zone to buy
10 What are the risks if the price drops below 114
If it breaks 114 the next major support