XRP Faces Potential 25% Drop to $2 if $2.70 Support Fails
XRP price is under pressure after last week’s sell-off, trading at around $2.78. Technical indicators and on-chain metrics point to further weakness. The Crypto Fear & Greed Index fell to 46. Active XRP Ledger addresses dropped to about 19,250 from 50,000 in mid-July. Futures open interest also slid from $10.94 billion to $7.7 billion, signaling reduced investor conviction. On the daily chart, XRP price has formed a descending triangle since July’s high of $3.66, with a flat support at $2.70. A breach below $2.70 could trigger a 25% decline toward $2.08, aligned with the triangle’s height and SMA demand zones at $2.6–$2.48. Conversely, holding $2.70 may enable XRP price to rebound toward the 50-day SMA at $3.09 and potentially $3.70. Traders should watch these levels to gauge market direction.
Bearish
The article’s analysis suggests a bearish outlook for XRP price. Declining on-chain activity and falling futures open interest reflect waning investor conviction. The descending triangle pattern on the daily chart typically resolves downward, with a breach of the $2.70 support often leading to a 20-25% drop, as seen in similar setups in other altcoins. In the short term, traders may see increased sell pressure if the key support breaks. Longer term, sustained weakness could cement a downtrend unless significant buying emerges near the $2.6–$2.48 demand zone. Therefore, the risk of a further slump outweighs bullish scenarios, supporting a bearish categorization.