XRP Price Prediction: XRP is a Falling Knife That Could Hit The Floor at $1.9

The native asset of the Ripple network has lost 7.3% of its value in the past 7 days after a trend line break and multiple strong sell signals in the daily chart.

Market participants expected a positive reaction after the CME Group approved XRP’s futures last week. However, the price action has been flashing sell signals for a while now including some extreme momentum readings.

Crypto liquidations in the past 24 hours indicate how leveraged the market was as $841 million in long positions have been flushed out during this period. This figure includes $30 million worth of XRP longs.

Nearly a fifth of that total corresponds to smaller altcoins while BTC liquidations currently account for almost a third.

Yesterday, Ripple shared a cryptic video in its X account that reads “Find out how blockchain is changing finance…and just about everything else, too.”

The company did not provide any explanation of what they were referring to and instead shared a video with the image of Wall Street’s Charging Bull statue and a reference to the Marunouchi metro line in Japan.

Upon looking up information about this metro station, it is the closest to Tokyo’s financial district. So, what exactly is Ripple saying with this? Are they about to launch a crypto product on the NYSE and Tokyo Exchange? Who knows.

XRP Could Drop to $1.93 After This Sell Signal

The daily chart shows that XRP broke below its trend line support last Friday and that same breakout candle retested the token’s second-best higher high from below.

This confirmed a break of structure for XRP and a bearish outlook in the near term.

The first target at $2.07 has already been reached today but a strong sell signal has popped up in the daily chart that could mark the beginning of another leg down.

The 9-day exponential moving average (EMA) has posted a bearish crossover with the 21-day EMA. This technical phenomenon is known as a ‘death cross’ and marks a significant shift in both momentum and trend direction.

The last time this sell signal appeared, XRP dropped by nearly 19% and then started to recover. Hence, if we expect a normal 10% to 15% pullback for the token – which is within the market’s normal range – XRP could dive to $1.93.

This would mean a bearish breakout below the 200-day EMA but would still be above the token’s 2025 low of $1.60.

Momentum indicators show a steady drop as the Relative Strength Index (RSI) has moved below the 50 level (bearish) while the MACD’s histogram has been posting increasingly higher negative readings for 8 days in a row as bearish momentum has gained traction.

XRP Is In Falling Knife Mode

Looking at a lower time frame, the extent of this decline seems quite dramatic as the price has been on a vertical downtrend (falling knife) since Wednesday.

Following the trajectory of this price channel, XRP should retest the $2 level during the weekend.

The Relative Strength Index (RSI) has touched oversold levels twice in just 48 and has not managed to bounce back strongly at any point. Sellers seem to be in full control, possibly as a result of the White House’s proposed tax bill on foreign investors.

Weekends tend to favor distributions, which means that the market could be quite bearish.