Highlights
- XRP price is at risk of a crash as the XRP/ETH ratio forms a rounding top pattern, teasing at a potential 40% move to the downside.
- The dropping ratio signals declining interest to XRP as Ethereum amasses interest amid the launch of ETH-focused treasuries.
- If XRP falls below its key support zone, the price may crash to $1.63.
XRP price is up by an impressive 4.28% today, June 16, to trade at $2.25 at press time. XRP’s daily trading volumes had surged by 50% to $2.6 billion as the recent gains drew market interest. However, the recent uptrend has failed to negate the bearish pressure depicted on the higher timeframes as the weekly XRP/ETH chart hints towards a 40% drop.
XRP/ETH Flashes Bearish Signal
XRP price could record dips after the XRP/ETH ratio flashed a bearish signal. This ratio has created a rounding top pattern, which suggests that a reversal of the current trend from bullish to bearish was looming and likely to happen. This pattern formed after the ratio started to drop in April, following a notable uptrend between Q4 2024 and Q1 2025.
The key support lies at 0.00085, and at press time, Ripple had already broken below this level, with the downtrend set to continue to 0.00052, which will be a 40% crash from the current level. The RSI also shows that the momentum is bearish, suggesting that XRP’s price faces the risk of dropping further.
The ongoing downtrend that led to the formation of a rounding top also suggests that traders are shifting their attention from other altcoins to Ethereum. This may be caused by the ongoing interest around Ethereum-focused treasuries following the recent 176,000 ETH purchase by Sharplink Gaming
XRP Price Defends Key Support Zone
XRP price is attempting to bounce from a key support zone that has held for months, as trading volumes rise per CoinMarketCap’s data. It has been defending this zone for the last two months, and the looming breakout coincides with the squeeze of Bollinger band indicators, which have previously preceded a major move to the upside.
If XRP is successful in breaking out above this support zone, the ensuing rally could push it past the upper Bollinger band of $2.32, after which the target price will be $2.60.
However, bears appear to have control over Ripple’s price action as shown by the AO indicator. These histogram bars are lengthening in size below the zero line, and this usually shows that sellers have the upper hand.
If this support zone fails to hold, Ripple’s price may crash to $1.63, aligning with a previous CoinGape analysis noting that XRP bears are targeting $1.60 after a key on-chain metric showed a local top had been formed.
What’s Next for Price?
The technical structure for the XRP/ETH ratio shows a looming possibility that XRP price may underperform against Ethereum in the near term. With bullish signs emerging for Ethereum, traders may abandon other altcoins for ETH, causing Ripple’s token to post a weak performance. In this case, traders should expect a breach of the $2 psychological support level and a decline to $1.63.
Conversely, if traders decide to step in now, XRP price may bounce from the current support zone and possibly target $2.60 and eventually rally to $3.
In summary, XRP price risks further decline despite the 2% intraday gain. The XRP/ETH ratio that signals a 40% crash may cause Ripple’s token to underperform against Ethereum. If inflows to XRP dry up as traders reallocate capital to ETH, Ripple price may drop. Conversely, bouncing from a key support zone may push Ripple’s price past $2.60.
Frequently Asked Questions (FAQs)
1. Why is XRP price underperforming against Ethereum?
2. Can XRP price drop below the $2 support level?
3. What’s next for XRP price?
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