XRP has shed 12 percent of its value over the past five days, and a newly formed technical pattern on the charts signals that further declines could be on the way. According to widely used technical analysis tools in the cryptocurrency market, the presence of a “bear pennant” structure on the three-day XRP/USD chart indicates that downward momentum could soon accelerate.
Technical indicators and price target
Since early February, XRP/USD has been trading sideways within the confines of a bear pennant. Technically, such patterns are typically interpreted as signs that an existing downtrend will continue. The bearish break was confirmed once the price fell below $1.40. Experts calculate that based on the pennant’s height, XRP could be headed for a drop of approximately 52.5 percent, targeting the $0.65 region.
Technical analyst ChartNerd noted on X (formerly Twitter) that the weekly chart shows XRP’s Stochastic RSI indicator giving a “death cross” signal. This is the third time that this has occurred since the July 2025 high for XRP. Each of the previous two signals triggered sharp corrections of about 50 percent. In addition, the Relative Strength Index (RSI) has slid from 63 to 42 over the past seven days, adding to concerns of accelerating bearish momentum.
A clear technical confirmation would put the main support level just below the price target, at $1.27. Should XRP close below this threshold, the pair could first test $1.11 and then move toward the psychological barrier at $1.00, according to the analysis.
Institutional interest on the rise
Despite mounting short-term selling pressure, institutional demand for XRP remains strong. Inflows to US-based XRP spot ETFs continued unabated. According to SoSoValue, XRP ETFs attracted another $750,000 in new capital on Monday, marking the ninth consecutive day of continuous inflows. This brings total net inflows to $1.4 billion and assets under management to $1.14 billion.
Globally, XRP investment products recorded inflows of about $67.6 million for the week ending May 15. During the same period, Bitcoin and Ether investment products saw $981.5 million and $250 million in outflows, respectively. This pattern highlights that demand for XRP products has proven more resilient than that of other major cryptocurrencies.
As TronWeekly highlighted in a report published Tuesday, “these steady inflows to global products can be seen as a sign of growing confidence in regulated crypto assets.”
Focus on technical and regulatory factors
Analyses shared by Cointelegraph suggest that a combination of strengthening technical signals, the potential passage of the CLARITY Act in the US, and a recovery in activity on the XRP network could bolster the chances of a rebound. The CLARITY Act is designed to bring more definitive legal frameworks to the US cryptocurrency market. Both technical and regulatory developments are emerging as pivotal factors that could determine XRP’s price trajectory.
