XRP (XRP) price has plunged more than 35% since reaching a multi-year high of $3.40 in January — and the downtrend may deepen in April as new bearish signals emerge.

Let’s examine these catalysts in detail.

XRP nears a classic technical breakdown

XRP’s recent price action is flashing a classic bearish reversal signal dubbed “inverse cup and handle formation.”

The inverse cup and handle is a bearish chart pattern that signals fading buyer momentum after an uptrend. It resembles an upside-down teacup, with the “cup” marking a rounded decline and the “handle” forming after a brief consolidation.

A break below the handle’s support typically confirms the pattern, often leading to a drop equal to the cup’s height.

In XRP’s case, the rounded “cup” topped around March 19 and completed its curved decline by the end of the month. The ongoing sideways price movement between $2.05 and $2.20 forms the “handle.”

A breakdown below this horizontal consolidation range could validate the bearish structure, opening the door for a potential move toward the $1.58 support area — as suggested by the measured move projection shown on the chart above.

In other words, XRP can decline by over 25% in April if the inverse cup and handle setup plays out as intended.

Adding to the sell-off risk is data from the volume profile visible range (VPVR) indicator, which shows the point of control (POC) around $2.10–$2.20 — a key support zone. A breakdown below this high-volume area could trigger a sharper drop, as lower volume levels below have offered little historical support in recent history.

Conversely, a strong close above the 50-period 4-hour EMA (red line) near $2.14 could invalidate the inverse cup-and-handle pattern. Such a breakout may shift momentum in favor of the bulls, potentially paving the way for a rally toward the 200-period 4-hour EMA (blue line) around $2.28.

Related: Investor demand for XRP falls as the bull market stalls — Will traders defend the $2 support?

XRP whale flow point to more sell pressure

As of April 5, CryptoQuant’s 90-day moving average whale flow chart was showing sustained net outflows from XRP’s largest holders since late 2024.

During XRP’s sharp price boom in Q4 2024, whale activity flipped deeply negative, indicating large entities were distributing into strength and selling the local tops. The trend has continued into 2025, with the total whale flow remaining firmly below zero.

This divergence between rising prices and declining whale support suggests weakening institutional conviction and raises concerns over XRP’s near-term price stability unless accumulation resumes.

US President Donald Trump’s global tariffs and the Federal Reserve’s slightly hawkish response to them have furthered dampened risk sentiment, which may weigh XRP and the broader crypto market down in the coming quarters.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.