XRP’s price has softened in recent days, dropping below $2 after failing to sustain its recovery attempts. This shift has returned near-term momentum to sellers, especially as the price closes below short-term dynamic support on higher timeframes.
A technical analysis shared by CoinsKid on X examines a broader corrective pattern forming on the 5-day chart, which could lead XRP on a steeper bearish trajectory unless key price levels are reclaimed.
Three-Wave Correction: Structure and Significance
Analysis of XRP’s price action since mid-2025 reveals a corrective sequence that can be described in waves. According to CoinsKid, what initially seemed like a corrective advance toward the moving averages on the 5-day chart failed to hold after meeting resistance at a marked sell signal.
Based on the 5-day candlestick chart, XRP appears to be tracing a three-wave corrective move. This suggests the recent bounce to $2.4 was not a true return to bullish control, but rather a retracement within a larger downward pattern that has further to unfold.
A key point in the analysis is XRP’s loss of the “CoinsKid ribbon,” a custom indicator on the 5-day chart. This band of moving averages had served as a trend strength guide for most of 2025, with sustained trading above it indicating bullish control. However, XRP has consistently closed below this ribbon since the flash crash in October 2025, with sellers maintaining broader control since then.
Multi-Year Trendline as Downside Target
The bearish scenario highlighted on the chart points to XRP’s next major area of interest around a rising multi-year support trendline, currently converging in the $1.30 to $1.40 range. This ascending trendline, visible on the 5-day chart and extending back to 2020, aligns with zones where XRP has historically found strong demand after pullbacks.
At the time of writing, XRP is trading at $1.96, down 4.7% over the past 24 hours. CoinsKid projects that if the current corrective move continues, XRP’s price could decline from the descending resistance line toward the $1.30–$1.40 support area over the coming months. This would complete an ABC wave correction that began after XRP peaked at its all-time high of $3.65 in July 2025.
According to the analysis, only a sustained move back above the 5-day ribbon would invalidate this bearish outlook and reduce the likelihood of the price revisiting that lower support region.
Frequently Asked Questions
FAQs XRP Price Decline Potential Further Drop
Beginner Questions
1 What does it mean that XRPs price is trending downward
It means the overall price movement over a recent period has been consistently moving lower with each peak and valley generally being lower than the last
2 What is a threewave correction in simple terms
Think of it like a pattern in the price chart After a strong price move up the price often pulls back in a specific rhythm down a partial bounce back up and then down again Completing this ABC pattern often signals the end of that corrective phase
3 Why does this pattern suggest another big drop could happen
Technical analysts believe that after this kind of correction pattern completes the prior dominant trend often resumes So if the downtrend was paused for this correction it might now be ready to continue lower
4 Should I sell my XRP immediately because of this
This analysis is based on one technical perspective You should never make investment decisions based on a single indicator Consider your own investment goals risk tolerance and do thorough research This is a warning sign for traders not necessarily a direct instruction for all holders
Intermediate Advanced Questions
5 What time frame is this threewave correction typically analyzed on
It can appear on any chart timeframe The significance is greater on longer timeframes A threewave correction on a weekly chart suggests a more major trend shift than one on a 1hour chart
6 What key price level would confirm the start of a significant drop
Technicians would look for the price to break below the low point established at the end of the presumed Wave C A decisive break and close below that support level would be a strong confirmation that the downtrend is resuming
7 Are there any factors that could invalidate this bearish outlook
Yes If XRPs price were to rally strongly and break above the peak of the recent Wave B of the correction it would suggest the correction might be over and a more bullish move could be starting invalidating the immediate drop scenario