Price Analysis

Bearish Pattern Threatens XRP Price For Longer Correction, But Will it?

The XRP price resonating within the inverted pennant pattern reflects a possible correction to the $0.25 mark. Keep holding?
Published by
Bearish Pattern Threatens XRP Price For Longer Correction, But Will it?

The XRP/USDT pair has been wavering in a sideways rally for the past four months. However, following the April-May bloodbath, this consolidation represents an inverted pennant pattern. As per the technical setup, this pattern offers a small break or rest period for XRP sellers before resuming the price correction.

Advertisement

Key points from XRP analysis: 

  • Under the influence of a bearish pattern, the XRP price could lose the June low support of $0.288.
  • A bullish breakout from the overhead trendline will invalidate the bearish thesis
  • The intraday trading volume in the XRP is $912 Million, indicating a 14% loss.

Source- Tradingview

On September 16th, the XRP price rebounded from the support trendline with a massive bullish engulfing candle, registering a 9.1% gain. However, the altcoin has already hit the overhead trendline, limiting bullish growth from climbing higher.

Today, the coin price accounts for a 0.8% intraday, offering a follow-up on a bullish reversal. However, if the selling pressure persists, the XRP price witnesses a minor correction to the bottom trendline.

Also read: XRP Lawsuit: What Next After Summary Judgment Approval?

Thus, the technical chart indicates the price action has narrowed enough to be considered a no-trading zone. Therefore, until altcoin is trapped within the two converging trendlines, the sideways rally will continue for a few more sessions.

As per the theory, the coin price should breach the bottom support trendline as an indication to continue the downtrend. Completing the pattern, the XRP price would extend the correction fall to the $0.25 mark.

On a contrary note, even though the inverted flag pattern is a bearish continuation pattern, the coin price possesses a possibility of a bullish breakout from the resistance trendline. Doing so will offset the bearish pattern and may bolster a new recovery rally.

Advertisement

Technical Indicator

Bollinger band: the coin price retest of the indicator’s upper band suggests an upcoming bear cycle within the triangle space.

RSI: concerning the swing lows within the price pattern, the daily-RSI slope shows a significant positive divergence indicating growth in underlying bullishness. This divergence vouch for the recovery theory and suggests the price should eventually break the above trendline.

Thus, the interested traders must wait till the price doesn’t break either trendline.

  • Resistance levels: $0.36 and $0.388
  • Support levels: $0.32 and $0.30
Advertisement

Share
Brian Bollinger

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Price Analysis

SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism

SUI price has once again found strength at its ascending support, creating expectations for another…

October 1, 2025
  • Price Analysis

Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?

Chainlink price has attracted fresh attention after recent analyst insights highlighted key technical patterns. The…

September 30, 2025
  • Price Analysis

Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M

Dogecoin price crashed to an important support level as the crypto market pulled back. This…

September 30, 2025
  • Price Analysis

Ethereum Price Eyes $8,600 As Institutions And Whales Double Down

Ethereum price continues to dominate discussions as analysts highlight repeating cycles that historically triggered strong…

September 30, 2025
  • Price Analysis

Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45

Dogecoin price has been consolidating inside a rising channel, hinting at another potential bullish setup.…

September 30, 2025
  • Price Analysis

Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data

Bitcoin price rose for two consecutive days as it moved from a low of $108,650…

September 29, 2025