XRP falls 2.86% as volume drops, double top raises $0.80 risk

XRP double top raises downside concerns

A potential double top formation is worrying traders who are closely following XRP’s price action. Crypto With Gopal, a digital asset analyst known for technical evaluations, identified two recent price rejections in the $1.65 to $1.70 range. These repeated failures to break higher have led to speculation that XRP could be at risk of further losses, especially if immediate support levels fail to hold.

Crypto With Gopal noted that sellers stepped in after two rejections near $1.65 to $1.70, causing XRP to slide toward the $1.25 support zone. If the price breaks below this area, the path toward $0.80 could become more likely.

A double top is a classic chart pattern that often signals a potential trend reversal. In this scenario, two similar price peaks form before a retracement, suggesting that buying power is weakening. The recent pullbacks to the $1.25 area have now become critical for future price direction.

Analysts have identified the $1.25 support as a key level. Should XRP fall below this threshold, further downward movement toward $0.80 could follow according to Gopal’s assessment. While this is a possible downside target, this outcome is not certain unless the support area is decisively breached.

Alongside softening price action, XRP’s market capitalization now sits at $82 billion. The decline in trading activity, reflected in the reduced volume, suggests uncertainty as traders pause to watch pivotal support.

XRP technical signals show persistent weakness

Technical analysis suggests continued weakness for XRP. The Relative Strength Index (RSI) currently sits at 35.45, placing it well below the neutral threshold of 50. This reading signals that sellers are in control and buying pressure remains limited.

Further bearish momentum is seen in the Moving Average Convergence Divergence (MACD) indicator. The MACD line is measured at -0.03221, remaining below its signal line at -0.01274, with a histogram of -0.01946, reinforcing the negative outlook.

XRP is also trading under key technical resistance. The 0.786 Fibonacci retracement level at $1.34 has turned into immediate resistance, while further upside barriers are expected near $1.45. A sustained move above these levels would be required for a possible rebound.

Mini dictionary: RSI (Relative Strength Index) is a momentum oscillator that measures the speed and change of price movements, with values below 50 typically indicating weaker momentum or bearish pressure.

Key levels for XRP in the near term

For traders monitoring immediate risks, $1.25 remains the crucial support level, as identified by the latest analysis. If selling persists, Fibonacci levels near $1.20 could act as an additional downside marker.

Protecting the $1.25 support and regaining the area between $1.40 and $1.50 may be essential if XRP is to reverse recent losses and regain positive momentum.

Overall, the combination of declining volume, technical weakness, and potential trend reversal signals places XRP in a vulnerable position. If the double top formation is confirmed by a breakdown of support, price movement toward $0.80 may become increasingly likely.