The price of XRP has declined to approximately $2.26, representing a 6.9% decrease in the last 24 hours amidst significant selling pressure in the crypto market. Total liquidations have surpassed $1.2 billion, with XRP alone witnessing about $27 million in forced position closures.
XRP, after briefly touching levels above $2.60 earlier in the week, has retreated towards a crucial support area.
Bearish Momentum Persists on Weekly Chart
On the weekly timeframe, XRP continues to exhibit signs of a bearish divergence, a trend that originated in late July. Despite intermittent recovery attempts, the overall momentum has weakened. The pattern remains active, indicating that downward pressure has not been fully exhausted.
In recent weeks, XRP has been forming lower highs and lower lows, indicating a diminishing market strength. Unless a clear reversal pattern emerges, the broader outlook leans towards a potential extended pullback.
Resistance and Support Zones
On the daily chart, XRP has struggled to surpass the $2.63 to $2.70 range, which previously acted as both a peak and a 50% Fibonacci retracement level. This zone continues to serve as robust resistance.
The current price is hovering around a critical support area between $2.30 and $2.40. Maintaining a position above this region is crucial. A close below $2.30 could lead to potential support levels near $2.05 and subsequently $1.80, aligning with previous consolidation zones from earlier this year.
If momentum strengthens and the price stabilizes above current levels, the next targets on the upside would be $2.67, $2.88, and $3.10. A breakthrough beyond these levels could shift sentiment in favor of recovery.
Short-Term Bounce Still Possible
Despite the ongoing correction, short-term rebounds remain feasible as XRP nears support levels. These temporary movements often occur when the market tests major zones, allowing prices to stabilize before determining a new direction.
However, these rebounds should be viewed as short-term reactions rather than indications of a complete reversal. The overall structure still reflects weakness, and a convincing recovery would necessitate XRP firmly surpassing the $2.70 resistance threshold.
