XRP Price Forecast: Risks of Major Correction Up to 50%

XRP’s Price Rally Faces Major Correction Risks

The recent XRP price rebound has hit a critical juncture, with reports indicating a potential 40–50% correction on the horizon due to bearish patterns and profit-taking. As XRP navigates key technical challenges, traders must remain vigilant for signs of reversal amidst shifting market dynamics.

Understanding the XRP Price Forecast: Risks of Major Correction

The latest fluctuations in the cryptocurrency market highlight significant XRP price forecast risks of major correction. After a notable rebound from a four-month low of $1.61, there are growing concerns that XRP may soon retrace as historical patterns suggest potential declines. The presence of bearish technical formations, particularly the inverse cup-and-handle pattern, indicates that a retracement may be imminent, with projections estimating a possible plunge of 40–50%.

Historical Context

XRP’s past behavior can offer critical insights into current market dynamics. Notably, during previous bull cycles in 2018 and 2021, it experienced sharp corrections after reaching significant price highs. Whenever the XRP price soars beyond the aggregated realized price—around $1 currently—earlier patterns reveal a tendency for profit-taking, leading to increased selling pressure. Such scenarios historically align with over 80% of XRP addresses sitting in profit, hinting at a precarious situation for holders.

The realized price serves as a psychological benchmark.
Similar market conditions preceded notable pullbacks in the past.
The potential downfall towards the $1 mark intersects with critical moving averages.

Understanding these XRP price forecast risks of major correction is essential for both investors and traders navigating this volatile market.

XRP Price Forecast Risks of Major Correction

The recent XRP price rebound has raised discussions among traders and analysts about the potential for a significant downturn. After reaching a low of $1.61, XRP has surged nearly 30%, yet major correction risks loom over the horizon. Current analyses suggest that XRP is at a critical juncture, forming a bearish reversal pattern known as the inverse cup-and-handle (IC&H). This pattern typically indicates a decline of about 40–50% from recent highs.

As of April 19, XRP has entered the handle formation phase of the IC&H pattern with a decisive neckline support situated around $2. If XRP breaks below this critical support, projections indicate a decline toward $1.24, approximately 40% lower than current levels. Veteran trader Peter Brandt has warned that XRP’s market capitalization could face a staggering 50% drop in the coming weeks.

Key Technical Indicators Suggest Downward Pressure

The technical outlook is compounded by historical price behavior, where XRP has historically retraced to its aggregated realized price after major price surges. This trend aligns with the current realized price, roughly estimated at $1, which serves as a psychological benchmark for investors. Notably, over 80% of XRP addresses are currently in profit, an indicator that may fuel profit-taking in a market that is increasingly bearish.

Current realized price: ~$1
Potential downside target: ~$1.24 (40% lower)
Market cap drop prediction: up to 50%

As traders reassess their positions, the chances of a major correction in the XRP price remain heightened. The recent optimism surrounding XRP reaching new all-time highs seems to be waning, with recent prediction market data showing diminishing confidence in achieving prices above $3.55 before 2026.

XRP’s Price Forecast and the Risks of Major Correction

The recent analysis of XRP’s price shows concerning trends that could impact market dynamics significantly. Following a 30% rebound from a four-month low of $1.61, technical indicators now suggest substantial risks of a major correction, potentially pulling XRP down by 40-50% towards its ‘realized price’ of $1. This pattern is captured through the inverse cup-and-handle (IC&H) formation, indicating a bearish sentiment that resonates with past trends observed in 2018 and 2021.

For traders and investors, this bearish outlook underscores the importance of monitoring the ‘realized price’ as a psychological benchmark. With over 80% of XRP addresses in profit, there is a heightened risk of profit-taking, which historically precedes sharp pullbacks. As market sentiment shifts towards caution, the prospect of XRP reverting to its realized price could incentivize more traders to sell, amplifying downward pressure. Consequently, stakeholders in the cryptocurrency market must remain vigilant, as the current technical indicators foretell significant market volatility ahead.