XRP faces intensified selling pressure as analysts increasingly turn bearish on the asset’s short-term outlook. The cryptocurrency is trading near $1.94, failing to hold gains above the $2 mark despite brief attempts earlier in the week.
According to analyst Koroush AK, XRP shows signs of a descending wedge on the daily chart. This technical pattern is often associated with continuing a downtrend, especially when paired with lower highs and rising volatility.
Koroush noted that the $2.06 resistance level remains a key focus for traders, warning that this area could trap early buyers before another downward leg, as XRP continues to struggle to maintain momentum.
His analysis showed data demonstrating an aggressive ascent of current market momentum. He described how the short-term trading setups provide superior risk-reward dynamics for selling rather than buying.
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The popular analyst Cole Garner shares a similar stance about the market conditions. The expert has instructed his subscribers to trade XRP short because he sees declining market values and anticipates further price depreciation.
Overvaluation and Weak Fundamentals Raise Concern Among Analysts
Adding further weight to the bearish sentiment, analyst Crashius Clay described XRP as significantly overvalued under current market conditions. He criticized the asset’s market cap, noting that it is not backed by sufficient retail buying interest or strong fundamentals.
Clay evaluated XRP’s price functionality, warning about future instability by connecting its situation to assets like Shiba Inu, which experienced price inflation effects. The analyst has a profitable $1 million bet against XRP prices, which he maintains while market sentiment deteriorates.
According to Clay, XRP could face a major price drop due to insufficient meaningful support combined with marketwide doubts about the asset. The analysis indicates that XRP faces possible price deterioration due to the absence of increasing investor trust.
Support Levels to Watch as XRP Tests Market Patience
Koroush’s chart analysis highlights $1.56 and $1.30 as potential support levels if XRP fails to reclaim ground above $2.06. These zones could offer temporary relief, but analysts warn they may not withstand prolonged selling pressure.
Source: XRP chart by Koroush AK
If XRP loses its footing at these supports, a further drop toward $1 is likely. Analysts agree that short positions may remain favorable until signs of a sustained reversal appear on the chart.
With continued rejections at resistance and a lack of bullish follow-through, market experts advise traders to approach cautiously. Short-term strategies now favor selling into failed rallies as the broader sentiment remains tilted toward the downside.
Also Read: XRP Falls Below $2 Again, Here’s Why It Declined Today
