XRP Price Alert: Bear Flag Signals Potential Drop to $1.60

XRP is flashing warning signs after breaking down from a bearish chart pattern. With trading volumes dropping and whales selling, could we see a plunge to $1.60?

Bear Flag Breakdown: What It Means

XRP’s daily chart shows a concerning development:

• Broken support from bear flag’s lower trendline
• 26% downside risk to $1.63 (measured from flagpole height)
• Sell volumes spiked to $172M (highest since May 30)

The Directional Movement Index (-DI above +DI) confirms bearish momentum is strengthening.

Why Traders Are Nervous

Three red flags suggest further downside:

1. 90-day MVRV at 31% – indicates extreme profit-taking potential
2. Whales selling – on-chain data shows large holders exiting
3. 34% volume drop – suggests weakening buyer interest

Historically, when XRP’s MVRV exceeds 15%, corrections follow.

Potential Silver Linings

Not all indicators point down:

• MFI rising to 56 – could signal bear trap
• RLUSD growth – possible catalyst if GENIUS Act passes

But with geopolitical tensions weighing on crypto markets, the path of least resistance appears downward.

Key Levels to Watch

• Immediate support: $2.00 (psychological level)
• Target: $1.60-$1.63 (bear flag measurement)
• Reversal signal: Reclaiming $2.18 resistance