The XRP price is currently experiencing a downturn, falling 5% over the last 24 hours to trade at $2.97. Technical analysis suggests this recent dip presents a crucial moment for bulls, as failing to regain the $3 support level risks a deeper correction to $2.24. This price action comes on the heels of a notable decline in XRP volume. Key takeaways include:
* **XRP’s Price Under Pressure:** The price is currently struggling below the psychological $3 mark. This marks a significant event, as it echoes past instances where a similar break triggered a 50% drop to $1.61 in April.
* **Support Levels Critical:** If XRP fails to reclaim the critical support level at $3, further price declines may occur, potentially leading to a retest of the crucial areas between $2.94 (50-day SMA) and $2.72 (local low on August 2nd).
* **Technical Signals Point to a Downward Trend:** Data from Cointelegraph Markets Pro and TradingView indicates that the XRP/USD price is breaking below a symmetrical triangle on the daily chart. A continued failure to close above this support line at $3.00 could push the price even lower, potentially hitting as low as $2.25 – down 25% from current levels.
* **RSI Reflects Weakening Bullish Momentum:** XRP’s relative strength index (RSI) has dropped to 45 from 61 over the past week, signifying a decrease in bullish momentum.
* **Negative CVD Points Towards Profit-Taking:** Analysis of spot taker cumulative volume delta (CVD) reveals that sell orders have been dominant recently. This indicates profit-taking among traders, potentially leading to further price drops if the sellers’ pressure remains high.
* **Historical Evidence Suggests Further Downward Movement:** Cointelegraph reports indicate a significant portion (94%) of the XRP supply is currently in profit at current prices. Historical trends have shown a strong correlation between this phenomenon and price tops.
It is crucial to remember that this article does not constitute investment advice or recommendations. Any financial decision should be made after thorough research and individual consideration.