XRP Price Plummets: Analyst Jesse Colombo Warns of Major Crash

Technical Indicators and Market Sentiment Point to Further Decline

The price of Ripple (XRP) has entered a steep downtrend, and prominent analysts are predicting an even sharper decline. Jesse Colombo, a well-known market observer with over 70,000 followers on X, has identified clear signals pointing to an imminent correction. On Monday morning, XRP was trading at $2.16, marking a drop of over 35% from its yearly high.

Head-and-Shoulders Pattern Signals Critical Danger for XRP

The broader crypto market is struggling with a bearish sentiment, heavily impacting XRP’s price movement. Bitcoin, the industry's leading cryptocurrency, has fallen from its all-time high of $109,300 to its current level of $82,000, with many altcoins experiencing even steeper losses.

Adding to XRP's struggles is the uncertainty surrounding a potential Strategic XRP Reserve in the U.S. According to data from Polymarket, the likelihood of such a reserve being established is only 24%. While a Bitcoin reserve may be feasible, analysts are doubtful that the U.S. Congress would approve a reserve for XRP or other altcoins.

Colombo sees XRP’s current price action as highly concerning and points to the formation of a head-and-shoulders pattern, a well-known technical chart pattern that often signals a trend reversal. The structure is clearly visible:

• Head: The previous high at $3.40
• Shoulders: Resistance zones around $3.00
• Neckline: The crucial support level at $2.00

If XRP falls below the $2.00 threshold, the downward momentum could accelerate dramatically. The next significant support level is at $1.00, representing a potential 55% drop from current levels.

Wyckoff Theory Supports Bearish Outlook for XRP

Beyond the head-and-shoulders pattern, additional technical indicators reinforce a negative outlook. The Wyckoff Theory, a widely used market analysis model, describes four key phases: accumulation, markup, distribution, and markdown.

Since 2020, XRP has been in a prolonged accumulation phase, followed by a sharp rise in late 2023. However, it now appears to have entered the distribution phase, where large investors gradually reduce their holdings. According to Wyckoff’s model, this phase is typically followed by a markdown phase, characterized by increased supply and weakening demand—another bearish signal for XRP.

Could XRP’s Crash Trigger a Chain Reaction in the Altcoin Market?

XRP’s current weakness could spill over into the broader altcoin sector, as many investors begin losing confidence in riskier digital assets. If the psychological $2.00 support level is breached, panic selling could intensify the downward trend.

Whether XRP can recover from this precarious situation or continue sliding toward $1.00 remains uncertain. However, one thing is clear: technical indicators and market sentiment are sending a strong warning—and it’s far from optimistic.