A significant technical battle is unfolding for XRP (XRP), with analysts divided on the token's near-term trajectory. On one side, a bearish technical pattern suggests a sharp decline is imminent. A 'hidden' bear flag pattern has been identified on XRP's chart, following a drop from above $1.43 to the $1.32 area, which formed the pattern's flagpole. The token has since consolidated in a narrow range between approximately $1.32 and $1.36.
The bear flag's measured-move target points to an 18% decline from the breakdown level, which would bring XRP near the $1.10 support zone. A confirmed close below the flag's lower boundary near $1.32 would activate this target. Declining volume during the consolidation phase is seen as a confirming signal, suggesting fading buying interest. This bearish outlook is compounded by broader market pressure, with Ethereum spot ETFs seeing significant outflows reflecting a risk-off sentiment.
However, a counter-narrative is emerging from the daily chart. Analysis of the daily XRP/USD chart reveals a bullish divergence on the Relative Strength Index (RSI). While XRP's price made lower lows in February and March, the RSI formed higher lows, indicating weakening bearish momentum. Furthermore, the volume profile shows the main trading activity (point of control) is in the $1.37-$1.45 range, with the current price of ~$1.33 sitting below it. This could be interpreted as a false breakdown designed to collect liquidity before a reversal.
The key level for invalidation of the bearish thesis is a sustained close above $1.36, while the broader bullish scenario would gain credibility if XRP can close the monthly candle above $1.37. The token's fate in the coming sessions hinges on whether the $1.32 support holds or breaks.
