Chart Warns of XRP 40% Plunge Signal..."Claims it will go to $2.80 if Clarity Act Passes"

▲ Ripple (XRP) ©

Despite institutional investors' funds pouring in for 9 consecutive days, with over $1.2 billion flowing into spot Exchange Traded Funds, a technical warning light has been triggered, suggesting that XRP (Ripple) could be stuck around $1.43 and potentially plunge an additional 40% against Bitcoin.

According to the investment news outlet TradingNews on April 24 (local time), XRP is currently continuing a dull sideways trend around the $1.43 mark. In contrast, the US XRP spot ETF market saw a net inflow of $73.78 million over 9 consecutive days, including $3.89 million on April 23 alone. The cumulative inflow since its launch has reached $1.284 billion, indicating strong institutional accumulation, but this shows a stark discrepancy with the current stagnant price movement.

The most concerning aspect is the confirmation of a descending triangle pattern in the chart representing XRP's relative value against Bitcoin, which hints at a decline. This ratio, currently trading around 1,840 satoshis, has fallen back to pre-previous bull market levels, and according to the pattern's target, it carries the risk of plunging an additional 40.5% from current levels to 0.000011 Bitcoin. In dollar terms, it is supported by the 50-day simple moving average at $1.38, but it is deeply trapped below the 200-day simple moving average at $1.85, which determines the long-term trend.

The launch of Grayscale's 3x leveraged spot product, which was expected to be an upward catalyst, has been postponed again to May 7, increasing market disappointment. The delay of the product, which was expected to inject massive trading volume and volatility, has taken away short-term upward momentum. Experts point out that true large capital, such as pension funds or sovereign wealth funds, can only flow in if the Clarity Act, which would permanently guarantee the commodity status of cryptocurrencies, passes the Senate, emphasizing that this bill is the most important short-term catalyst.

Despite price sluggishness, the Ripple ecosystem continues its practical expansion, with over 300 financial institutions worldwide adopting related infrastructure for cross-border payments. Standard Chartered has set long-term price targets, predicting XRP could reach $2.80 by the end of 2026, $5.00 in 2027, and $12.50 in 2028, premised on ecosystem growth and the passage of the Clarity Act, among other factors. However, the harsh reality is that in the short term, it cannot escape its relative weakness compared to leading cryptocurrencies.

The outlet issued a conservative investment opinion for XRP, recommending tactical staggered buying below $1.35, but active buying only below $1.20. It advised respecting $1.30 as a strong structural bottom and warned against aggressively chasing the price above $1.48 without a clear breakout signal. Investors' extreme patience is being tested amidst the positive signal of institutional fund inflows and the chart's bearish warnings.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*