Key Insights
- XRP is trading below its 50-day EMA, showing signs of bearish pressure.
- Market sentiment has changed from bullish to neutral and has relatively strong odds of a downturn.
- XRP must reclaim $3.00 to have a chance at recovering toward $4.00.
XRP price is now struggling to stay above support levels that could decide what happens next. The cryptocurrency shows signs of weakness after reaching a new all-time high of $3.65 in mid-July.
The asset trades at the $2.88 price level and is facing rejection from its 50-day EMA near $2.93. Can XRP hold its ground above $2.7?
XRP Price Faces Pressure at the 50-Day EMA
The 50-day EMA has been among the strongest resistance points for the XRP price lately. Each attempt to reclaim this level over the last few days has failed. With this, sellers are pushing the price lower with every effort.
This is even more worrying, as technical indicators show a clear bias towards the bearish side. For example, the Relative Strength Index (RSI) currently sits at 41.
This is well below the neutral 50 level and indicates that sellers currently control the market. The Moving Average Convergence Divergence (MACD) also shows a bearish crossover with the RSI’s signal line.
Unless XRP moves back above $2.93 and closes with strength, traders are expecting further declines.
Scenarios for XRP Price
There are currently two scenarios for the XRP price. On the one hand, the cryptocurrency is eyeing a push towards $4. The immediate resistance for this is around $3, a psychological barrier.
If XRP rallies and breaks above this price level, the next up would be $3.3, before the $4 zone.
However, it is worth noting that the XRP price must reclaim the $3 level for this bullish path to materialize. This must occur before the bears gain any more strength.
XRP will also need substantial volumes to break through $3.30. Without this, the rally toward $4 looks unlikely. On the other hand, XRP is at risk of a drop towards $2.
The first support for this zone is the psychological $2.5 price level. If the bulls lose this zone, the next support lies at $2.30. Finally, the last accumulation zone for the XRP price sits at around $2.
In sum, if XRP fails to hold $2.72, a retest of $2.50 seems the most likely. Breaking below this level could open the door to $2.30 and eventually, the $2 mark.
Bitcoin and Ethereum Show More Stability
While XRP price continues struggling, Bitcoin and Ethereum show signs of steadiness. For example, Bitcoin is holding above $111,980 despite an 8% correction from its recent highs.
If it reclaims $114,786, it could test $116,000 again and drag the rest of the market (including XRP) up. Ethereum is trading near $4,282 after recovering from a recent decline.
Support at $4,232 is still solid, and bullish strength is building as the RSI trends upward. Both assets look stronger than XRP at this stage. This means XRP is currently the weakest link among the top three cryptocurrencies.
What Traders Are Watching Next
XRP price is trading within a descending triangle pattern. This is a bearish setup that tends to lead to breakdowns. The subsequent few trading sessions will be essential to watch. This is because if XRP fails to move back above $2.93, it has more risk of testing lower levels.
Traders are also looking for macro events like the Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium. Any signal on interest rates or liquidity policy could create volatility across all cryptocurrencies, including XRP.
Ivan Petrov is a seasoned journalist with deep insights into Russia’s dynamic crypto landscape. His work focuses on market dynamics and the transformative potential of blockchain technology, making him a go-to expert for understanding Russia’s digital financial innovations.
