Recent indicators suggest a concerning trend for XRP as its Net Unrealized Profit/Loss (NUPL) metric has entered a phase commonly associated with price tops. Historically, this phase has signaled reversals, resembling late 2021 behaviors when XRP's price could not maintain upward momentum despite earlier gains. As of June 4, XRP's price rebounded to around $2.50, reflecting a strong recovery from April lows, but remains significantly below its January peak of $3.40.
Institutional interest in XRP investment products is on the decline, with CoinShares reporting a withdrawal of $56.6 million in exchange-traded products (ETPs) over the past month. In contrast, competitors such as Ether and Solana saw net inflows, highlighting a stark difference in market sentiment, potentially impacting XRP's future price stability.
Technical charts reveal a falling wedge setup for XRP, indicating a potential price drop of 22-38% if it fails to break key resistance levels. If XRP falls below current levels, projections suggest prices could slip to $1.78, and in a worst-case scenario, as low as $1.45.
Despite these bearish indicators, a breakout above the upper resistance of this pattern could lead to a significant rally, possibly targeting prices around $3.66. Yet, the current technical and market conditions warrant caution for investors, especially given the recent downturn in institutional demand.
Institutional interest in XRP investment products is on the decline, with CoinShares reporting a withdrawal of $56.6 million in exchange-traded products (ETPs) over the past month. In contrast, competitors such as Ether and Solana saw net inflows, highlighting a stark difference in market sentiment, potentially impacting XRP's future price stability.
Technical charts reveal a falling wedge setup for XRP, indicating a potential price drop of 22-38% if it fails to break key resistance levels. If XRP falls below current levels, projections suggest prices could slip to $1.78, and in a worst-case scenario, as low as $1.45.
Despite these bearish indicators, a breakout above the upper resistance of this pattern could lead to a significant rally, possibly targeting prices around $3.66. Yet, the current technical and market conditions warrant caution for investors, especially given the recent downturn in institutional demand.
