XRP Flashes Red: Short Setup Points to Potential Drop

XRP just hit a wall, and traders are taking notice. After a solid run that pushed the token above $3.19, the momentum is starting to crack. The question isn’t if we’ll see a pullback, but how deep it goes.

What the Charts Are Saying

Analyst Lucky Chart Ape spotted the warning signs on the 1-hour chart – what looks like a textbook five-wave Elliott pattern that’s now running out of gas.

The technical picture is pretty clear. XRP completed its rally above $3.19 but couldn’t hold those gains. Now it’s stuck below the $3.00 resistance zone, and that’s where the short setup is playing out. The next target? A retest of $2.67, which lines up perfectly with previous support areas where buyers showed up before. If that doesn’t hold, things get interesting fast – Fibonacci levels point to the $2.45-$2.39 zone as the next major battleground.

Market Reality Check

Sure, XRP has plenty going for it long-term. Ripple’s regulatory wins in the U.S. and institutional backing aren’t going anywhere. But right now, the broader crypto market is shaky. Profit-taking is happening everywhere, global economic jitters are making investors nervous, and when risk-off sentiment hits, even the strongest tokens feel the pain.

Here’s what traders need to watch:

• Resistance: $2.99-$3.19 – If XRP can’t break back above here, the bears stay in control
• First Support: $2.67 – The horizontal level everyone’s watching
• Deep Support: $2.45-$2.39 – Where the real buyers might finally step in
• Volume Gaps – Thin liquidity means any break could get ugly fast