XRP is currently facing strong headwinds, with bearish signals becoming increasingly clear amidst the heavy selling pressure experienced in February. Technical indicators are now suggesting a possible 50% drop in price, a situation exacerbated by the overall downturn in the crypto market and recent policy decisions coming out of the US.

However, there’s a glimmer of hope from South Korean traders, who seem to be throwing a lifeline to XRP bulls. Ripple has actually gained over 1.5% against the South Korean currency in the last 24 hours, offering a counterpoint to the prevailing negative sentiment.

According to market analysts on TradingView, a concerning head-and-shoulders pattern has emerged on XRP’s 3-day chart. This pattern is often seen as a precursor to price declines, and it’s characterized by three peaks: a central, higher peak (the head) with two smaller peaks (the shoulders) on either side.

Essentially, once the price falls below what’s called the neckline of this pattern, history suggests we could see a drop in price equal to the height of the pattern itself.

Is a 50% Price Dip Coming for XRP? Can it Weather the Storm?

Adding to the worry, XRP/USD has already broken through its neckline support by nearly $2.20 on Monday. This break makes a further price slide even more likely. Technical indicators are reinforcing this bearish outlook, pointing towards a potential fall to around $1.15 for XRP – a significant 50% decrease from its current levels.

Analysts are currently watching to see if Ripple can hold a critical micro-support level at $2.17. If it fails to stay above this point, we could see another dip down to $1.94. On the flip side, if XRP can maintain its position above $2.17, there’s still a chance for an upward move towards $3.18, then $3.58, and even $3.85. However, if that $1.94 support breaks, immediate support is seen at $1.81, followed by a more significant support zone between $1.80 and $1.40.

Looking at the daily chart, XRP is struggling to stay above the $2.20 mark after previous attempts to push past $3 failed. Resistance to price increases remains strong between $2.50 and $2.60, and we’re seeing even heavier selling pressure as it approaches $3.

A dramatic 122% spike in intraday trading volume clearly signals increased selling activity. This suggests a battle between strong bearish forces and holders who might be losing their resolve to hold onto their XRP in the coming weeks.

For any positive price turnaround, we’d need to see significant buying interest at these levels. Sustained buying accumulation is essential to push XRP back above $2.50 and kickstart any potential breakout from this downward trend.

Trump’s Policies Add Fuel to the Fire, But Traders Eye South Korea

Market sentiment around Ripple took a significant hit when President Donald Trump signed an executive order. This order made it clear that the US government will not be using taxpayer money to buy more altcoins. Instead, the government will only maintain its existing crypto holdings, which reportedly include Bitcoin (BTC) and Ethereum (ETH), but notably exclude Ripple.

Adding to the uncertainty, the US dollar index is still hovering near its lowest point in four months, creating a less stable environment overall. This kind of situation can lead to increased volatility for riskier assets like cryptocurrencies, including XRP.

With XRP facing headwinds against the US dollar, holders are turning their attention to its performance in South Korean markets. The token is currently up 1.8% against the South Korean won and is trading at 3,264 KRW per coin on Upbit.

According to data from CryptoQuant, XRP reserves on Upbit, South Korea’s largest crypto exchange, have decreased by 8% over the weekend. At the same time, exchange outflows hit a seven-day high of $7.8 million today, hinting at reduced selling pressure within the Asian market.

This positive movement comes at a time when the South Korean won is depreciating against the dollar, largely due to ongoing global trade tensions. Reports from last week indicate that South Korea is preparing to respond to the US’s proposed tariffs on auto imports, which are expected to take effect in April.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

Source: cryptopolitan.com