XRP (XRP/USD) is displaying concerning technical signals as the cryptocurrency trades at $3.4927, having completed what appears to be a textbook double top formation near the $3.60 resistance level.
The digital asset has failed to sustain momentum above its recent peaks and is now approaching a critical juncture where the integrity of its longer-term uptrend faces a significant test from mounting bearish pressure.
The double top pattern becomes increasingly apparent when examining the twin peaks formed around the $3.60-$3.62 zone, with the second peak showing clear signs of rejection and inability to exceed the initial high.
This classical reversal pattern suggests that buying interest has been exhausted at these elevated levels, potentially setting the stage for a more substantial corrective move if the pattern’s neckline support fails to hold.
The neckline of the double top formation appears to converge with the $3.400 major psychological support level. Should this area give way to selling pressure, the measured move target from the double top pattern would project significantly lower price objectives, marking a potential shift in the XRP’s intermediate-term trajectory.
Double Top Dynamics
The height of the XRP formation, measured from the peaks to the neckline support, provides a projection for potential downside targets should the pattern complete with a decisive break below the supporting trend line.
Based on the current structure, a confirmed breakdown below the ascending trend line support could trigger a measured move toward the $3.20-$3.25 area initially, representing the first technical target derived from the pattern’s dimensions.
A more extended decline could potentially reach toward the $3.00 psychological support level, where longer-term buyers might be expected to emerge and provide a foundation for stabilization.
Current XRP price action suggests that it is in the process of testing the resolve of trend line support, with recent candlestick formations showing increased selling pressure as the cryptocurrency approaches this critical zone.
Moving average analysis reveals a mixed picture, with the shorter-term indicators beginning to flatten as the correction has developed, though the longer-term trend lines continue to provide dynamic support for any potential bounce attempts.
Weakening Bullish Pressure
Stochastic oscillator readings provide additional confirmation of the deteriorating technical picture, with both lines positioned in the lower half of their range and showing continued southward momentum. This development suggests that selling pressure has gained control and that any near-term bounces could be viewed as corrective moves within a broader bearish sequence.
The momentum indicators appear to be confirming the price action, with clear signs of negative divergence visible as XRP made its second peak. This divergence pattern, where momentum indicators fail to confirm new highs in price, often serves as an early warning signal for potential trend reversals and supports the double top thesis.
The lower momentum indicator has been steadily declining throughout the formation of the second peak, indicating that underlying buying pressure has been consistently weakening even as price attempted to challenge the previous highs. This technical development strengthens the case for a potential breakdown scenario.
