XRP price risks a 20% crash to $1.70 — Here is why

XRP is exhibiting bearish signals, including an inverted V-shaped correction pattern on the daily chart, potentially leading to a 20% price drop to $1.70. A bearish divergence between XRP's price and the weekly RSI suggests increasing downward momentum, while on-chain data reveals a significant decline in daily active and new addresses, indicating reduced network activity and user engagement. An analyst notes that XRP has broken below a rising channel, with bearish momentum threatening a drop to sub-$2.00 levels.

Analysis

XRP is exhibiting significant bearish technical and on-chain signals, suggesting a potential near-term price decline. The daily chart reveals an inverted V-shaped correction pattern formed between April 7 and June 2, which could precipitate a 20% drop towards the $1.70-$1.72 support neckline. This price action follows a 62% surge from a $1.61 low, which was halted by buyer congestion at the $2.65 resistance level, leading to profit-taking and the current correction. Reinforcing this bearish outlook, the daily Relative Strength Index (RSI) has declined from 68 to 41 since May 12, indicating increasing downward momentum. Furthermore, a weekly chart analysis shows a bearish divergence, with XRP price forming higher lows between November 2024 and June 2025 while the weekly RSI concurrently formed lower lows, descending from 92 to 51; such divergence typically signals weakness in the prevailing uptrend. Analyst MasterAnanda concurs, noting XRP has broken below a rising channel with potential for further decline to sub-$2.00 levels, specifically targeting $1.72. On-chain metrics further substantiate the negative sentiment: daily active addresses on the XRP Ledger have plummeted from a year-to-date peak of 608,000 on March 19 to approximately 31,200, and new addresses have fallen from a 2025 high of 15,800 to 4,400. This sharp decrease in network activity and user engagement signals reduced transaction volume, liquidity, and potentially waning confidence in XRP's short-term prospects, with stiff resistance observed between $2.50 and $2.65 likely to continue suppressing price.