XRP’s Textbook Bear Flag Pattern Hints At Further Selloffs in May

XRP (XRP) is flashing a classic bear flag breakdown on the 4-hour chart, signaling the potential for deeper selloffs in the final days of May.

XRP Could Retest $2 Level As Support

The bear flag, typically characterized by a steep drop followed by a weak upward consolidation, appears to be playing out as expected, with XRP breaking below the lower trendline of its rising flag structure.

This technical setup emerged after XRP fell from around $2.58 to $2.30 in mid-May, forming the flagpole. What followed was a modest recovery that lacked strength, with price action confined within a rising parallel channel — the flag itself.

On May 25, the price slipped below this channel, confirming a breakdown that could carry the token further south.

Volume also picked up during the breakdown, which strengthens the bearish case. Market participants are clearly responding to the pattern, which has historically had a high probability of continuation.

The next logical target lies near the $2.00-2.14 level, a horizontal support range that held during April and aligns with the projected move from the height of the flagpole.

XRP’s bearish outlook is further reinforced by the price closing below both its 50-period (the red wave) and 200-period (the blue wave) exponential moving averages (EMAs).

These EMAs, once short-term support zones, have now flipped into resistance. Meanwhile, the relative strength index has slipped to 36.47, indicating mounting bearish momentum that’s not yet oversold, leaving room for further downside without a technical rebound.

XRP Weekly Chart Warns of Pullback Toward $1.74

Zooming out to the weekly timeframe, XRP is also displaying signs of fatigue after a vertical rally earlier in 2025. The price has since formed a falling wedge pattern, typically a bullish reversal structure.

However, XRP is pulling back after testing the wedge’s upper trendline as resistance, eyeing an extended decline toward the lower trendline, which is aligning with the 50-week EMA (the red wave) at near $1.74.

A pullback toward this level would represent a roughly 25% correction from current prices, typical of consolidation phases within long-term bull markets.