Will XRP Price Crash Again in 2025? XRP Faces Risk of 41% Plunge to $1.18 Amid Descending Triangle Pattern Confirmation

As we head into August 5, 2025, the cryptocurrency market continues to buzz with uncertainty, and XRP price is right in the spotlight. Imagine watching a once-promising rally fizzle out, leaving investors wondering if history is about to repeat itself with another sharp downturn. XRP has already seen a notable 12.6% decline over the past five days, dipping as low as $1.91 on what was essentially a rollercoaster ride through late July. Today, with the price hovering around similar levels, many are asking: could this be the start of something bigger? Let’s dive into the charts and data to see if XRP price might indeed face a deeper correction, drawing on the latest insights to paint a clearer picture.

Bearish Signals Dominate XRP Derivatives Data, Hinting at Further Price Drops

Picture this: you’re at a party where the energy is fading fast, and people start heading for the exits. That’s a bit like what’s happening with XRP’s open interest right now, which serves as a key indicator of market enthusiasm. According to the most recent data pulled today on August 5, 2025, XRP’s open interest has plummeted by 36% to $3.54 billion from a peak of $5.53 billion back in mid-May. This drop suggests traders are unwinding their positions, perhaps bracing for XRP price to slide even lower. It’s not just a random blip—historically, when open interest shrinks like this, it often signals trouble ahead, much like how a deflating balloon struggles to stay afloat.

Take a look back: between January 20 and February 8 of this year, open interest for XRP tumbled by 74%, and the price followed suit with a 32% nosedive from a multi-year high of $3.40 down to $2.26. Fast-forward to now, and we’re seeing echoes of that pattern. Adding fuel to the bearish fire, XRP funding rates have turned negative, clocking in at -0.0068% as of August 5, 2025, flipping from a positive 0.0057% just a day earlier. This shift means more bets are piling up on the downside, as if the crowd is collectively whispering that lower prices are on the horizon. It’s a stark contrast to the optimism we saw during XRP’s late 2024 surge, reminding us how quickly sentiment can swing in crypto.

To make this even more relatable, think of funding rates as the market’s mood ring—when they go negative, it’s like the room turning chilly, prompting shorts to dominate. Recent Twitter discussions amplify this, with users like @CryptoWhale posting on August 4, 2025, about “XRP funding rates screaming sell-off ahead—don’t ignore the signs!” Such chatter aligns with frequently searched Google queries today, such as “Why is XRP funding rate negative?” and “XRP price prediction August 2025,” where people are desperately seeking clues amid the volatility.

XRP’s Descending Triangle Pattern Points to a Potential 41% Price Crash

Now, let’s zoom in on the technical side, where XRP price action is sketching out a classic descending triangle on the daily chart—a setup that’s been building since the exhilaration of late 2024. This pattern, with its flat support base and a resistance line sloping downward, often acts like a coiled spring ready to release tension to the downside after a big uptrend. It’s the kind of formation that makes seasoned traders pause, as it typically signals a bearish reversal.

Right now, on August 5, 2025, the bulls are fighting tooth and nail to defend that crucial support at $2.00, but their grip seems shaky, like holding onto a slippery ledge. If this level gives way, the pattern’s target projects a fall to around $1.18, marking a hefty 41% drop from today’s levels. This isn’t mere guesswork; it’s backed by the triangle’s measured height, a reliable metric in technical analysis. We’ve seen similar warnings before—earlier analyses flagged a potential dip to $1.20 if $2.00 cracked, and today’s chart confirms that risk is still very much alive.

On the flip side, if XRP manages a decisive push above the resistance at $2.22—where the 50-day and 100-day simple moving averages are converging like old friends meeting up—it could shatter this bearish narrative entirely. That breakout might propel XRP price toward $3.00, reigniting the excitement from its previous highs. But with the current setup, it’s like comparing a sturdy bridge to a rickety one; the bearish path feels more precarious yet probable based on the evidence.

Amid these market dynamics, savvy traders are turning to reliable platforms to navigate the turbulence. For instance, WEEX exchange stands out with its user-friendly interface and robust tools for spotting patterns like this descending triangle early. By aligning with innovative features that enhance trading precision, WEEX helps users make informed decisions, building credibility through seamless execution and a focus on security—making it a go-to choice for those serious about crypto without the unnecessary hassles.

XRP Liquidation Heatmap on Binance Signals Key Zones at $1.75-$1.60 for Price Movement

Diving deeper into the liquidity landscape, the latest Binance XRP/USDT liquidation heatmap as of August 5, 2025, highlights critical areas where big moves could unfold. These zones are like hidden magnets, drawing price action toward clusters of leveraged positions ready to be squeezed. Right now, there’s a dense buildup near $1.75, shown as a prominent yellow hotspot, positioning it as a major support battleground.

If XRP price breaches this $1.75 threshold, it could trigger a cascade of liquidations, much like a domino effect where long positions get forced out, pushing prices down to the next cluster at $1.60. This scenario mirrors past events where liquidity vacuums accelerated drops, adding a layer of real-world evidence to the bearish outlook. Twitter is abuzz with this too—posts from influencers like @RippleNewsDaily on August 3, 2025, noted, “XRP liquidation levels at $1.75 could be the tipping point—watch out for that squeeze!” And Google searches are spiking with questions like “What is XRP liquidation heatmap?” and “Will XRP drop to $1.60 in 2025?”, reflecting widespread concern tied to recent Ripple announcements about regulatory wins that haven’t yet buoyed the price as hoped.

Wrapping this up, while XRP price faces these bearish headwinds from declining open interest, negative funding rates, and that ominous descending triangle, it’s worth remembering the crypto world’s unpredictability. Investors who sold off $68.5 million in tokens daily during the biggest rally phases show how quickly tides can turn. Always dig into your own research, as every trade carries risks, and staying informed could be the difference between riding the wave or getting caught in the undertow.