- XRP’s Gaussian Channel signals potential decline toward mid-band support levels.
- XRP outlook depends on Bitcoin, with BTC weakness likely dragging prices lower.
- An analyst predicts that XRP will complete its cycle low by Q3 2026.
XRP is reflecting price weakness consistent with historical trends, as Bitcoin threatens to drop below key levels. The latest behavior of both cryptocurrencies has left traders doubtful about an immediate bullish surge. Instead, there are indications that the price, particularly that of XRP, could drop lower before establishing a bottom.
Crucial XRP Indicator Leaves Traders Concerned
According to cryptocurrency analyst ChatNerd, XRP’s behavior around the monthly Gaussian Channel indicator, which is the primary guidance tool for long-term macro trends, is raising significant concerns among investors. Historically, XRP’s pullback to the upper regression band of the Gaussian Channel has led to further declines lasting three to four months, and a move toward the middle regression band before establishing a foundation.
ChartNerd noted that XRP had already tested the upper band of the Gaussian Channel at $1.16 and is aiming to decline further toward the middle regression at around $0.80, which coincides with a previous year-long resistance level from the 2023/2024 cycle that has yet to be backtested for support.
From the analyst’s perspective, XRP is set for further decline, depending on external factors, such as Bitcoin breaking below the $62,000 support and heading toward the lower $50,000 range. Therefore, XRP traders are paying attention to Bitcoin price development, knowing that further BTC declines would drag the altcoin along. ChartNerd predicts that the XRP downtrend could find fulfillment by Q3 2026, marking a market cycle low for XRP.
Leveraged XRP Traders Have Been Liquidated
In the meantime, the XRP estimated leverage ratio has dropped to 0.14, meaning that all investors using leverage have been liquidated, according to data analyst CW. However, contrary to ChartNerd’s projection, CW believes XRP has reached a significant level, given that whenever the leverage ratio hits a low point, it marks the bottom.
Notably, XRP’s estimated leverage ratio has fallen to the level of November 2024, when the price was $0.9. Therefore, CW expects a turnaround for the cryptocurrency anytime soon, unless external factors, as indicated by ChartNerd, push the price lower.
Related: Analysts Predict How High XRP Could Rise in the Next 3–4 Weeks
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