XRP Currently Offers a Strong Risk:Reward Setup as Downside Fuel Nearly Gone

The current XRP position could offer one of the strongest risk:reward setups as downside fuel continues to deplete.

XRP has witnessed one of its longest stretches of downward price action, having recorded five consecutive monthly red candlesticks, a bearish development that last played out in late 2016 to early 2017.

Within the past five months, XRP has collapsed more than 52% to the current price of $1.36. However, market data shows the current XRP price position could present a strong risk-to-reward ratio, as the downside fuel that has pushed prices lower over the past few months may be close to exhaustion.

Key Points

• XRP has recorded five consecutive red monthly candles for the first time in nine years, down 52% within this period, as downward pressure intensifies.
• During the downtrend, XRP filled all its previous wicks, including the one recorded in the Oct. 10 crash.
• Market data shows that the downside fuel may now be close to exhaustion if the XRP market is really in a HTF bullish setup.
• As a result, the current position could offer one of the best risk-to-reward setups for investors, but a drop below $1.2 could invalidate it.
• The XRP price would have to reclaim the $1.61 price level and breach its diagonal resistance trendline for the bullish case to strengthen.

XRP’s Lower Wicks from Feb to Oct 2025

This current position was recently highlighted by TraderJB, a crypto market watcher, as the XRP price struggles to recover from the persistent downward pressure. 

JB confirmed that amid the downtrend, XRP has filled all the previous wicks it made after the November 2024 upsurge that pushed prices above $1 and $2. For context, following the rally to $3.4 in January 2025 and the subsequent push to $3.6 by July of that year, XRP recorded multiple wicks as prices quickly dropped to lower levels.

Notably, on the 3-day timeframe, these wicks appeared during the drops to $1.90 in December 2024, $1.77 in February 2025, $1.61 in April 2025, and then $1.25 during the Oct. 10, 2025, crash. 

For the uninitiated, these lower wicks often appear when sellers drive a sharp price drop, but buyers quickly push it back up. They specifically indicate areas where the market briefly explored a price level but did not stay there for long.

XRP Has Filled All Previous Lower Wicks.

When an asset fills a wick, this means the price later returns to that same range and trades through it again. This is important because wick zones can contain liquidity, stop-loss orders, or untested support and resistance levels. 

As a result, prices often revisit these areas to complete unfinished trading activity, which can help confirm stronger support if the wick was lower and then provide clearer signals for future market direction.

According to JB, XRP has now filled all the previous lower wicks formed from February to October 2025. This happened as the price continuously dropped to levels around $1.9, $1.7, $1.6 and $1.1 during the ongoing downtrend. XRP revisited these levels to complete the unfinished trading activity.

XRP Offers Favorable R:R Ratio

Speaking further, JB then stressed that he does not expect much additional downward price action from here, as the downside fuel may be thinning out if XRP really maintains a high-timeframe bullish environment.

Notably, he confirmed that XRP made an initial attempt to flip the trend bullish when it rose to $1.61 last month, but faced resistance at this level. The market analyst stressed that he expected this. Now, he believes it remains possible that XRP could again retest the $1.25 low and a downward gray demand zone before building strength for another upward push.

JB emphasized that XRP must breach the $1.61 resistance and push above a descending trendline that has persisted since the drop from $3.6 in July 2025. He noted that doing this would strengthen the bullish case for XRP, potentially flipping the trend to a favorable position.

However, despite the current situation, JB insists that XRP currently offers one of the strongest risk-to-reward ratios for investors looking at a long-term opportunity. Nonetheless, if the price drops below the gray demand zone around $1.2 when XRP pushes to retest it, this would invalidate the bullish outlook.