XRP (XRP) has fallen 12% over the last five trading sessions to below $1.35, confirming a bearish chart pattern that technical analysts suggest could precede a much larger correction, even as institutional investment flows into XRP-linked products remain consistently positive.
"The Stoch RSI on the weekly chart has confirmed a deathcross, marking the third time this signal has flashed since the July 2025 all-time-high," technical analyst ChartNerd said on the X platform. The analyst noted that the two previous occurrences each led to price corrections of approximately 50 percent.
The bearish technical outlook is in direct contrast with institutional activity. According to SoSoValue tracking data, U.S.-based spot XRP ETFs recorded nine consecutive days of net inflows through Monday, accumulating $95.5 million. This pushed the total assets under management for these products to $1.14 billion. During the week ending May 15, global XRP investment products saw inflows of $67.6 million, while Bitcoin and Ethereum products experienced significant outflows of $981.5 million and $250 million, respectively.
The key technical test for XRP lies at the $1.27 level, a threshold market observers see as critical. A definitive break below this support could trigger a move toward $1.11, with the psychological $1.00 level coming into focus. To invalidate the bearish thesis, bulls would need to push the price decisively above resistance at $1.4250.
The price drop confirmed a bear pennant pattern on the three-day chart, a technical formation that has been developing since early February. The pattern’s measured move suggests a potential downside target near $0.65, which would represent a 52.5% decline from current levels.
Adding to the pressure, the daily Relative Strength Index (RSI), a measure of momentum, has fallen from 63 to 42 over the past week. An hourly chart shows a descending trend line with immediate resistance at $1.3720. The token is currently trading below its 100-period simple moving average, reinforcing the near-term negative outlook.
This article is for informational purposes only and does not constitute investment advice.
