A critical warning emerges for XRP traders as a premium Fair Value Gap (FVG) forms, threatening to trigger a sharp 10% correction and push the asset deeper into bear territory. The cryptocurrency, already down over 50% from its 2025 highs above $3.5, faces renewed selling pressure despite the short-term technical setup suggesting a potential bounce.

Mapping Out The Current XRP Trend

So far, it seems the XRP price is still stuck in a bearish structure, pseudonymous crypto analyst Quantitive Alpha shared in a TradingView post. This has been characterized by the XRP price putting in lower highs, as well as lower lows, suggesting that the downward trend is more powerful.

While this trend is important, there is also another development of interest that may have a significant impact on the XRP price as well. This is the premium FVG that could act as a magnet for the price, but eventually could be what sends XRP crashing even lower from here.

According to the crypto analyst, the XRP price could first move upward in a corrective move into this premium FVG gap. However, this would be in a bud to actually just rebalance the inefficiencies that have arose and then sweep Buy-Side Liquidity (BSL) at these levels.

Once this BSL is swept through, this is when the real move begins, because the next direction will determine whether the bears remain in control or if the bulls are able to eventually take over.

Why A Bearish Continuation Is Likely

According to the crypto analyst, the first move into the premium FVG is only a part of the broader move, which is still very bearish. Explaining how this could play out, the analyst says that once the imbalance is filled, then the price is likely to reverse again to continue the bearish trend.

This is because XRP will begin targeting the Sell-Side Liquidity (SSL) that lies lower than the current lows. Thus, this plays into a classic cycle of a digital asset initially moving toward taking whatever liquidity has pooled there, before moving back downward to continue its trend.

There is still a chance that the XRP price does flip bullish in the end, and this would be a sustained breakout of the premium FVG zone. This would eventually signal that the cryptocurrency has now shifted from bearish to bullish on the higher timeframe (HTF) structure.