- XRP faces downward pressure as rising supply outpaces demand, with prices dropping 7% amid macroeconomic uncertainties.
- A break below $1.96 could confirm a Head & Shoulders pattern, potentially sending XRP to $1.35 unless demand rebounds.
XRP’s price is under pressure as increasing supply and stagnant demand raise concerns about a potential downtrend. Despite positive developments like the U.S. Securities and Exchange Commission (SEC) dropping its appeal against Ripple, XRP has struggled to gain momentum.
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XRP Faces Supply-Side Pressure Amid Stagnant Demand
After surging over 500% in late 2024, XRP has now lost 35% from its January peak of $3.40. The cryptocurrency is currently down 7% on the day, with additional headwinds from macroeconomic factors such as U.S. President Donald Trump’s tariff threats and rising inflation.
XRP’s on-chain activity has also declined, with whale transactions returning to pre-U.S. election levels. Data from Binance and Upbit show exchange reserves remaining flat, signaling a lack of strong accumulation.
While open interest in XRP derivatives has climbed to 1.75 billion XRP from a monthly low of 1.35 billion, this has not been enough to counteract the supply pressure. Ripple unlocks 1 billion XRP from escrow each month, and around 33% of it enters circulation. This has increased the total circulating supply from 54 billion to 58 billion XRP in the past year, adding more downward pressure on prices.
XRP Risks Falling to $1.35 if Head & Shoulders Pattern Confirms
Currently, XRP has slipped below the critical $2.34 support level, raising concerns about further losses. If the token breaks below the $1.96 support—just under the $2.00 psychological threshold—it could confirm a Head & Shoulders (H&S) pattern, potentially pushing prices down to $1.35.
Currently, XRP has slipped below the critical $2.34 support level, raising concerns about further losses. If the token breaks below the $1.96 support—just under the $2.00 psychological threshold—it could confirm a Head & Shoulders (H&S) pattern, potentially pushing prices down to $1.35.
Indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that bearish momentum is growing.
On the upside, XRP could see a reversa
Indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that bearish momentum is growing.
On the upside, XRP could see a reversal if bulls successfully defend the $1.96 level, which has acted as strong support since December. A breakout above $2.60 would invalidate the bearish outlook and open the door for a move toward $2.78.
For now, XRP’s trajectory depends on whether demand picks up to counteract the growing supply. If investor interest remains weak, the digital asset could face further declines in the coming weeks.
