XRP Faces Potential 52.5% Decline Amid Bearish Patterns

XRP has experienced a 12% decline over the past five days, with technical indicators suggesting further losses may be on the horizon. According to Cointelegraph, the XRP/USD pair has been consolidating within a bear pennant pattern on the three-day chart since early February. This pattern, typically seen as a bearish continuation signal, was confirmed when the price fell below the pennant's lower trend line at $1.40. The projected downside target for XRP is approximately $0.65, representing a potential 52.5% drop from current levels. The weekly chart's Stoch RSI has confirmed a death cross, marking the third occurrence of this signal since the all-time high in July 2025, as noted by technical analyst ChartNerd. Previous instances of this signal have led to corrections of around 50%. The analyst highlighted that a failure at the weekly 20 EMA or the weekly 50 EMA, currently at $1.80, could trigger another downward move later this year. Additionally, the daily RSI has decreased from 63 to 42 over the past week, indicating growing bearish momentum. Despite the recent price correction, institutional interest in XRP remains robust, as evidenced by consistent inflows into U.S.-based XRP spot ETFs. Data from SoSoValue shows that XRP ETFs added $750,000 on Monday, marking nine consecutive days of net inflows totaling $95.5 million. This trend has increased cumulative inflows to nearly $1.4 billion, with assets under management reaching $1.14 billion. Global XRP investment products also saw weekly inflows of approximately $67.6 million for the week ending May 15, outperforming Bitcoin and Ether, which experienced significant outflows. Institutional demand for XRP products appears to be increasing, signaling growing confidence in regulated crypto exposure. As Cointelegraph reported, factors such as stronger technical validation, the passage of the CLARITY Act in the U.S., and recovering network activity could support a potential recovery for XRP. However, the market remains cautious as technical indicators continue to point towards possible further declines.