TLDR
- XRP price surged over 300% to end 2024, reaching a cycle high of $3.40 in January 2025
- Technical analysis shows a head and shoulders pattern forming, suggesting a possible reversal
- Donald Trump’s announcement of a strategic crypto reserve on March 2 caused a temporary XRP price surge
- Between March 3-4, XRP price dropped 26%, from $2.99 to $2.20, creating market uncertainty
- The token has rebounded 14.55% to $2.52 from its recent low, with analysts divided on future direction
The XRP token is currently facing a critical juncture after experiencing both meteoric rises and sharp corrections in recent months. Following a 300% surge that culminated in a January 2025 peak of $3.40, technical indicators now point to potential bearish momentum.
XRP’s price action has recently formed what analysts identify as a head and shoulders pattern, a technical formation often considered a warning sign of possible trend reversal. This development comes at a time when the token is creating its first lower highs since November 2024, breaking a months-long pattern of consistently higher peaks.
XRP
XRP Price
The weekly chart reveals that XRP’s rise began accelerating in November 2024, carrying the token to its cycle high of $3.40 in January. However, the price has struggled to maintain this momentum, with technical indicators showing signs of weakness. The Relative Strength Index (RSI) has generated a bearish divergence, while the Moving Average Convergence/Divergence (MACD) indicator has produced a bearish cross.
On the daily timeframe, the head and shoulders pattern has become more apparent. The March 2 high marked the top of the right shoulder, which analysts suggest XRP is currently completing. A breakdown below the neckline at $2.20 would confirm this bearish pattern, potentially triggering a downward movement.
If such a breakdown occurs, price targets based on the pattern’s height suggest XRP could fall to between $1.00 and $1.05, representing a 55% decline from current levels. Wave count analysis offers a slightly higher target of $1.40.
Recent price action has been heavily influenced by external factors. On March 2, Donald Trump announced plans for a strategic crypto reserve, which temporarily boosted XRP prices. XRP was reportedly the second-biggest beneficiary of this announcement, trailing only Cardano’s ADA token in terms of percentage gains.
However, the enthusiasm was short-lived. Between March 3 and 4, XRP experienced a steep 26% drop, falling from $2.99 to $2.20 as the broader market turned bearish following the Trump-induced price pump. This rapid decline caused widespread concern among investors.
Despite the sharp correction, XRP has shown resilience in recent hours. As of today, the token has rebounded to an intraday high of $2.52, representing a recovery of approximately 14.55% from yesterday’s low. This bounce has given some investors hope that the worst might be over.
Market Sentiment
Market sentiment remains divided on XRP’s near-term prospects. Some technical analysts maintain their bearish outlook, pointing to the head and shoulders pattern as evidence of further downside. One analyst, Ali Martinez, has suggested XRP could fall to $1.00 amid continued market weakness.
$XRP is heading to $1! pic.twitter.com/5id3Kej16c
— Ali (@ali_charts) March 4, 2025
In contrast, financial author Linda Jones has taken a more optimistic stance, urging investors to view the current dip as a buying opportunity. “You wanted a lower XRP price. This is it,” Jones wrote on social media, encouraging investors to accumulate more tokens at what she considers discount prices.
You wanted a lower XRP price – this is it. Don't miss this opportunity if you are still accumulating. pic.twitter.com/HXeCEnFoPe
— Linda P. Jones (@LindaPJones) March 4, 2025
Jones isn’t alone in her bullish outlook. Other pro-XRP commentators, like the social media personality known as Egrag, have expressed similar views on XRP dips.
According to Egrag, the specific entry price will matter little in the coming years, and investors will simply wish they had purchased more tokens at current levels.
#XRP – Do you Comprehend?
If you do not know what you are hodling, SELL NOW and get some Rest.
In the next couple of months and years it won't make a difference at what price you bought #XRP, the only thing you will say I wish I bought more.#XRPFamily Together We Rise. pic.twitter.com/tzpOnzg4vv
— EGRAG CRYPTO (@egragcrypto) February 27, 2025
Critics remain unconvinced by such optimism. Some skeptics have characterized the recent relief rally as a potential bull trap, suggesting that XRP’s periodic pumps actually present opportunities to short the market rather than accumulate.
Technical analysis currently presents a mixed picture. While the head and shoulders pattern suggests bearish momentum, a move above the right shoulder high of $3.03 would invalidate this pattern and potentially take XRP to new highs, though analysts currently view this scenario as unlikely.
The cryptocurrency’s price action may face additional volatility in the coming days as investors digest recent market movements and assess the validity of the head and shoulders pattern. A decisive break below $2.20 would confirm the bearish trend, while holding above this level could keep bullish hopes alive.
XRP has fallen sharply since its January peak of $3.40, creating the first lower high in its uptrend since November 2024. The decline confirms that the cycle high represented a deviation above the $2.85 resistance area, as the price now trades below this level.
The token’s immediate future may depend on whether it can hold above the critical $2.20 support level or breaks down, confirming the bearish pattern that many technical analysts have identified.
XRP’s price retraced most of its gains from the Trump announcement by March 4, with market participants now watching closely for signs of either continuation or reversal of this corrective phase.
