Is XRP Price at Risk of Crashing to $1.80 – Analysis

XRP price has added more than 5% in value in the last four days, with the momentum largely driven by market interest from the launch of an XRP ETF in Canada. However, despite the gains, bearish headwinds remain as the four-hour and the daily timeframe charts signal that a crash could still be imminent. This analysis explores whether XRP is still at risk of crashing to $1.80.

XRP Price Remains Under Bearish Pressure Below Key Resistance

Even after the recent 7x spike in XRPL daily active addresses, a majority of retail traders remain on the sidelines, and this has forced the XRP price to trade below a key resistance level for the last three weeks since May 29, as seen on CoinMarketCap’s data. This level lies between the range of $2.27 and $2.30, where XRP has faced five consecutive rejections.

The most recent rejection happened on June 16 after short-term buyers looking to make quick profits reacted to the news of the launch of an XRP ETF in Canada. However, this uptrend also failed, suggesting that bears are placing their sell orders at these prices. Until XRP clears this sell wall, it will remain under bearish pressure and risk falling by roughly 9% below the psychological support of $2.

The green volume profile bars also show that the $2.27 to $2.30 zone is not attractive to buyers. Hence, each time traders sell here, there is a lack of strong demand to absorb the sold coins, forcing the XRP price to decline.

The continuous rejections tend to push the price back to support around $2.10. If these conditions persist, it may prevent buyers from entering the market, giving bears full control of the price performance and causing a decline to $1.82.

Bearish Head-and-Shoulders Pattern Emerges

XRP also appears to form a bearish head and shoulders pattern on the daily timeframe, a formation that usually signals that a trend is about to reverse to the bearish side. The neckline of this resistance lies at $2.12, and if the price makes a decisive close below, it could trigger a 19% crash.

If XRP price loses this support level, it may not only crash below $1.80, but also attain the target of this head and shoulders pattern that lies at $1.70.

The SMA indicators prove the bearish case as XRP continues to fluctuate below the 50-day SMA level of $2.27. The price has been facing strong resistance here for three weeks, aligning with the lack of a decisive breakout from the resistance zone. Moreover, movements below the 200-day SMA confirm that the long-term outlook is also bearish.

The bearish momentum that is also depicted by the RSI with a reading of 48 is confirmed further by a recent CoinGape analysis, noting that the XRP/ETH ratio seems to be on the verge of a 40% crash.

Invalidation Thesis

As the technical structures highlight a growing risk of a potential crash in XRP price to $1.80, several macro factors suggest that buyers might step in if the conditions become favorable. These include:

• Increased odds that the US SEC could launch a spot XRP ETF after Canada approved this product, which is set to go live on June 18.
• The final vote of the GENIUS stablecoin Act on June 17 could increase interest in stablecoins like RLUSD and drive XRP price gains.

Therefore, as the four-hour and daily charts depict that bears have an upper hand in how XRP price could perform in the near term, it is certain that there is a risk of a crash to $1.80. However, some bullish macro factors could draw buyers in the near term and aid a recovery.