Ripple’s XRP is under the microscope this week as technical signals point to a potential downturn, with the XRP/ETH ratio flashing a warning that could reshape short-term market sentiment. As Ethereum continues to attract institutional attention, XRP holders are watching key support levels with caution.
XRP/ETH Ratio Signals Possible 40% Drop
Recent analysis of the XRP/ETH trading pair reveals a “rounding top” pattern—a classic technical indicator that often precedes a trend reversal. Since April, the ratio has been in decline, breaking below the crucial 0.00085 support level. If this bearish momentum persists, the ratio could fall to 0.00052, representing a 40% drop from current levels. This shift is reinforced by a bearish Relative Strength Index (RSI), suggesting that sellers are gaining control as traders pivot towards Ethereum, especially with the rise of ETH-focused institutional products and treasuries .
XRP Price Holds Key Support, But Bears Dominate
Despite a modest 2% gain today, XRP is struggling to maintain its footing above the $2 mark, currently trading at $2.19 with a 16% uptick in volume. The token has been defending a key support zone for the past two months, and the squeeze in Bollinger Bands hints at an imminent breakout—though the direction remains uncertain. If XRP can rally above $2.32, a move towards $2.60 is possible. However, technical indicators like the Awesome Oscillator (AO) show sellers in control, and a failure to hold support could see XRP tumble to $1.63 .
Ethereum’s Momentum Draws Capital Away from XRP
The ongoing shift in trader sentiment is largely attributed to Ethereum’s growing appeal. Institutional inflows, such as recent large ETH purchases, are drawing capital away from other altcoins. This trend is reflected in the XRP/ETH ratio and could continue to pressure XRP’s price in the near term .
What’s Next for XRP?
The technical setup suggests that unless XRP can attract renewed buying interest and break above resistance, the path of least resistance is downward. A breach of the $2 psychological support could trigger a slide to $1.63, while a successful defense and breakout could see targets of $2.60 or even $3 in a bullish scenario. For now, the market leans bearish, with traders closely monitoring both XRP’s support levels and Ethereum’s continued momentum .
