Analysts spot bearish signals for XRP as it breaks through critical support levels, urging traders to short XRP now and thank them later.

XRP is undergoing a significant downturn, declining from approximately $2.15 to $1.78. In particular, the digital asset has recorded a 16.62% drop within the last 24 hours. This steep correction was accompanied by a sharp increase in trading volume, suggesting intensified selling pressure in the market. 

Despite the recent losses, XRP remains up more than 199% year-over-year, reflecting the long-term impact of its Q4 2024 rally. However, the current environment indicates a shift in momentum, with technical and sentiment indicators pointing to increased bearish pressure in the short term.

“Short XRP Now”

In a tweet, market analyst Cole Garner drew attention to XRP’s LONG to SHORT ratio on Bitfinex. The chart, displayed on a 5-minute timeframe, revealed a dramatic shift in trader positioning.

The ratio initially surged from 9.5 to nearly 16, indicating a strong rise in long positions and suggesting growing bullish sentiment among traders expecting further upside.

However, at its peak, the ratio abruptly dropped to around 14, hinting at mass long liquidations or a sudden influx of short positions.

Garner’s chart further showed a continued decline to 7.2329 points — a steep 46.86% drop. In response, he called on market participants to short XRP and “thank him later”.

Short XRP now, thank me later pic.twitter.com/rM79TcEmpi

— Cole Garner (@ColeGarnersTake) April 7, 2025

Bulls Must Reclaim the $2.20 Level

Meanwhile, analyst Jesse Colombo noted XRP’s decisive break below a long-standing support zone between $2.00 and $2.20. According to Colombo, the breakdown completes a Head and Shoulders pattern that had developed from mid-December through March.

The neckline break in early April confirmed the pattern’s bearish structure. Technical projections now place XRP’s next support target around $0.60, signaling a potential retracement of its entire Q4 2024 advance. Colombo stated that bulls must reclaim the $2.20 level to invalidate the breakdown.

Context to Ongoing XRP Dip

In a broader context, analyst Vincent Van Code pointed to macro-level disruptions as contributing factors behind the XRP correction. Van Code noted that the overall market downturn stems not from asset-specific fundamentals but from larger economic shifts.

As a result, he urged XRP investors not to join the ongoing panic to liquidate their holdings, as he sees this development as manipulation by the dip pockets.