A trading expert is warning that XRP may face further losses, likely falling below $2, as technical indicators suggest the ongoing correction could persist.
As of press time, XRP was trading at $2.16, down 1.56% in the past 24 hours and over 8% in the past week.
XRP’s bearishness is likely to continue
In a May 30 TradingView post, analyst Master Ananda noted that XRP is showing renewed signs of weakness. The deepening bearish trend suggests the correction phase may not be over.
The downward movement accelerated on May 12. Since then, XRP has come under increasing pressure, breaking below the rising green channel it had followed since early April, effectively ending the short-term bullish rebound triggered when the asset breached the $1 resistance.
A key technical shift was the breakdown from this ascending channel, marked by a transition from higher highs to lower highs, three consecutive red daily candles, and broad market weakness.
One silver lining from Ananda’s analysis is that bearish volume remains “very, very low,” which may indicate the current sell-off lacks firm conviction. Still, he stressed that traders should prepare for further downside without a solid support level.
Ananda’s chart highlighted the next potential support zone, or “higher low,” around $1.60 to $1.85. This region served as a breakout area in early April and may now act as a price floor.
Also notable is the 0.236 Fibonacci retracement level at $2.0350. Depending on broader market sentiment, a break below this level could open the door to the $1.80 zone or even to $1.61.
Despite the near-term bearish outlook, Ananda remains optimistic about XRP’s longer-term prospects. In this case, many long-term holders are still targeting resistance levels at $2.70 and even $3.40 in a future bullish reversal.
“While a recovery can happen any day, the signals are bearish and we have three consecutive days the action being red, plus more than two weeks seeing lower prices. We are bullish long-term but short-term anything can happen,” the analyst said.
XRP’s price fundamentals
XRP’s recent losses have largely been driven by broader market sentiment. If the downtrend continues, bears could push the price below $2.
This sell-off comes despite the U.S. Core PCE Price Index (excluding food and energy) falling to an annual rate of 2.5% in April, its lowest level since March 2021.
However, the Federal Reserve has maintained a hawkish stance, warning that trade tariffs could increase the risk of recession.
The correction has also triggered significant action in the liquidation markets. When XRP dropped to $2.17, leveraged traders were hit with $30 million in liquidations, nearly all from long positions, which lost $29.75 million, compared to just $384,000 in shorts.
In the meantime, investors will also be watching XRP-specific fundamentals, including the potential approval of a spot XRP ETF and the resolution of the SEC vs. Ripple case, which may be heading toward a settlement.
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