Bearish Outlook for XRP: A 3-Wave Correction Signals Further Decline

XRP's recent price movements have taken a downward turn, with the cryptocurrency now trading below $2 after unsuccessful attempts to recover. This shift has swung short-term momentum back toward sellers, especially as XRP's price closes beneath short-term dynamic support levels on higher timeframes.

Key Takeaways

XRP has recently trended downward, trading below $2 after failed recovery attempts.
The current technical structure suggests a potential bearish path for XRP, indicated by a 3-wave corrective sequence.
Important resistance levels have formed, and if not reclaimed, XRP could see further declines toward $1.30-$1.40.
The loss of the CoinsKid ribbon indicator suggests sustained selling pressure.
A move above this indicator could change the bearish outlook.

XRP-Klarheit senkt Angst, hebt Risikoappetit

A technical analysis shared by CoinsKid on X suggests a developing larger corrective structure on the 5-day chart, indicating that XRP may be headed for further declines if key price levels aren’t regained.

Understanding the 3-Wave Correction

An examination of XRP’s price development since mid-2025 reveals an intriguing corrective sequence expressed in wave terms. According to CoinsKid, what started as a recovery into a cluster of moving averages on the 5-day chart has failed to maintain momentum after encountering resistance at a significant sell signal, illustrated in the accompanying image.

Based on CoinsKid’s analysis of the 5-day candlestick chart, XRP's trading pattern resembles a three-wave corrective movement. This interpretation suggests that the recent bounce to $2.4 did not represent a genuine return to bullish control but rather a pullback within a broader descending corrective pattern that still has further fluctuations to exhibit.

A crucial aspect of this analysis is the loss of a unique indicator known as the CoinsKid ribbon on the 5-day timeframe. This band of moving averages had previously indicated trend strength, with sustained trading above it reflecting bullish control. However, since the flash crash in October 2025, XRP has consistently closed below this ribbon, allowing sellers to dominate the overall trend.

XRP Price

XRP Price Chart. Source: @Coins_Kid on X

Multi-Year Trendline Signals Potential Decline

The bearish scenario presented on the chart highlights XRP’s next significant area of interest, situated around the rising multi-year support trendline, which currently falls between $1.30 and $1.40. This ascending white trendline, visible on the 5-day chart and dating back to 2020, aligns with areas where XRP previously saw strong demand after pullbacks. The highlighted green zone in the chart corresponds to this $1.30 to $1.40 range.

As of now, XRP is trading at $1.96, which reflects a decline of 4.7% over the past 24 hours. According to CoinsKid’s forecast, if the current corrective phase continues, XRP may drop from the descending resistance line toward this support area in the coming months. This would mark the final phase of an ABC wave correction that initiated after XRP reached a new all-time high of $3.65 in July 2025.

The analysis concludes that only a continuous move above the 5-day ribbon would negate this bearish trajectory and decrease the chances of the price probing the lower support region.

XRP price chart from Tradingview.com Bears push price lower | Source: XRPUSDT on Tradingview.com