Analyst Says XRP Is in Trouble: Here is Why

The recent market-wide downturn has pushed XRP below a critical ascending trendline, with one analyst suggesting trouble might be looming.

For context, the broader crypto market witnessed a massive crash on Aug. 19 following Bitcoin’s (BTC) sustained collapse, which pushed the premier crypto asset below the $116,000, $114,000, and $113,000 psychological levels in one fell swoop.

XRP Ascending Channel Breakdowns

Amid the cascading effect, XRP dropped to a two-week low of $2.84, fully relinquishing the $3 region. Now, market analyst Northstar insists XRP is in trouble, as this downward push resulted in a breakdown below a critical ascending trendline on the daily chart.

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Historical data from his chart shows that this pattern has played out four times this year, and each time, XRP witnessed steeper declines. The first instance was during the major pullback from February, after XRP corrected from the $3.4 peak in January. 

Amid the correction, it broke below an ascending trendline on Feb. 3, 2025. Following the breakdown, the bears eventually pushed XRP to a floor price of $2.26 on Feb. 7, culminating in a 19% crash.

When XRP recovered from the Feb. 7 low, it formed another ascending trendline. Nonetheless, a breakdown occurred on Feb. 21, leading to a steeper 28% decline to $1.94 by Feb. 28. Meanwhile, the third trendline breakdown materialized on March 26, with XRP crashing 22% to $1.89 by April 7.

From here, XRP witnessed the fourth ascending trendline during a recovery push to $2.65 in mid-May. After this, another breakdown emerged, pushing XRP to $1.9 by June, a level it recovered from to claim the latest $3.66 peak.

Another Steep Correction?

Now, Northstar’s chart reveals that a fifth breakdown has occurred amid the recent downtrend. As a result, the analyst expects XRP to have the same reaction as the last four times. For context, the average drop from the previous instances is 20%. If XRP records such a decline, its price could find a floor around the $2.4 mark.

Interestingly, this aligns with a recent commentary from EGRAG Crypto, a reputable analyst. EGRAG noted that if XRP pushes above $3.65, its price could soar higher. However, he said a drop below $2.65 could lead to steeper declines to the $2.34 level, close to the $2.4 mark.

Also, a closer look at the daily XRP chart shows that XRP boasts its first major support around $2.36 (S1). Meanwhile, XRP may have a chance at overturning this bearish situation if it pushes above the ascending trendline. To do this, it must first reclaim and hold above the Pivot point at $2.94 and then aim for the $3.52 resistance.

EGRAG has also suggested that if XRP can close above $3.3 this month, its momentum could flip bullish. However, even if the asset collapses 20% toward $2.4, a recovery is not out of the question, as this could merely be a healthy correction. Currently trading for $2.88, XRP’s RSI remains 42, signaling there is more room for growth.