XRP price dived to its lowest point in 12 days as the cryptocurrency sell-off accelerated amid fears surrounding DeepSeek.
Ripple (XRP) dropped to $2.65, falling by over 21% from its highest level this month, bringing its market cap to $173 billion.
XRP price forms a doji candlestick pattern
There are signs that the price of Ripple could bounce back as long as it trends near the $3 price level. Closing Monday’s trading session above that price would indicate the formation of a long-legged doji candlestick, which often signals a strong reversal.
A doji is a candlestick pattern characterized by a long lower shadow and a small body, implying that the price opened and closed at approximately the same point. In many cases, this pattern precedes a reversal.
Another bullish indicator is that Ripple has formed a break-and-retest pattern by moving to $2.6580, its highest swing since December last year. A break-and-retest is a popular continuation signal in trading.
Additionally, the XRP price remains significantly below its target point. The chart shows that the coin formed a long flag pole between November and December, followed by a symmetrical triangle. A bullish pennant pattern like this typically signals further upside, often equal to the length of the flag pole.
Therefore, measuring the same distance from the upper side of the pennant suggests that Ripple’s price could climb to $12.15.
Catalysts for Ripple
Ripple has numerous bullish catalysts that will help to push it to $12. Ripple Labs has scored a money transmitter license in New York and Texas, enabling it to provide financial services in the states.
XRP’s futures open interest has remained elevated in recent weeks, rising to over $6 billion—a significant increase from November lows of $650 million. A higher open interest figure often reflects strong demand for the coin.
Further, there are rising odds that the Securities and Exchange Commission will approve a spot XRP ETF later this year. These odds have risen to 73% on Polymarket. Third-party data shows that Ripple USD (RLUSD) is doing well as its daily volume jumps to almost $260 million.
