XRP Eyes Support Near $2.40 Amid Sell Signal, Possible Breakout Above $3.07 Considered

• XRP faces renewed selling pressure targeting the $2.40 support level after the TD Sequential sell signal.

• A falling wedge pattern combined with EMA support suggests a possible 20% price increase if XRP surpasses $3.07.

• Legal proceedings and ETF approval probabilities ahead of the August 15 SEC deadline heavily influence XRP’s market sentiment.

XRP price analysis highlights key support at $2.40 and breakout potential above $3.07, with legal and ETF factors shaping market trends. Stay informed with COINOTAG.

• XRP price retraces to $2.87 following a TD Sequential sell signal, focusing attention on $2.40 support.

• Technical patterns and EMA levels indicate a possible bullish reversal if resistance at $3.07 is broken.

• Legal updates and ETF approval odds remain pivotal for XRP’s near-term trajectory, as noted by COINOTAG analysts.

Analyze XRP’s critical support and breakout levels with COINOTAG’s expert insights. Track legal and ETF developments impacting price movements.

What Are the Technical Indicators Signaling for XRP’s $2.40 Support Level?

Technical indicators show XRP is testing a crucial support zone near $2.40 following a TD Sequential sell signal on the 3-day chart. The current price at $2.87 is hovering close to the $2.80–$2.95 range, which has historically acted as a strong accumulation area. Analysts emphasize that a drop below this support could trigger further declines, while holding above it may stabilize the price.

How Does the Falling Wedge Pattern Influence XRP’s Price Outlook?

The emergence of a falling wedge pattern, supported by the 200-period 4-hour EMA, suggests a potential bullish reversal for XRP. A decisive breakout above the $3.07 resistance level could end the current retracement phase and lead to an estimated 20% price increase. This technical setup is closely monitored by market analysts as a key indicator of potential upward momentum.

What Do On-Chain Data and Legal Developments Indicate About XRP’s Market Sentiment?

On-chain data reveals significant market adjustments, with over $41 million in liquidations primarily from long positions, and open interest dropping to $7.79 billion. This reduction in leveraged exposure may signal a foundation for price recovery. Simultaneously, legal proceedings remain a major factor, with Ripple and the SEC expected to submit a status report by August 15. Expert commentary suggests the possibility of dropped appeals, potentially releasing $125 million in penalties and positively impacting XRP’s outlook.

What Is the Impact of ETF Approval Prospects on XRP’s Price Movement?

Market optimism around an XRP ETF approval remains high, with analysts estimating a 90% chance of approval by October. Maintaining daily closes above $2.80 is critical to preserving a bullish structure, although a temporary dip to $2.34 cannot be ruled out. These factors contribute to cautious optimism among traders and investors.

What Is the Significance of the TD Sequential Indicator for XRP?

The TD Sequential indicator is a technical tool used to identify potential trend reversals. For XRP, a 3-day TD Sequential sell signal has triggered renewed selling pressure, highlighting the importance of monitoring the $2.40 support level. This indicator helps traders anticipate possible price corrections or rebounds.

How Do Legal Proceedings Affect XRP’s Market Dynamics?

Legal developments, including the upcoming August 15 SEC deadline, play a crucial role in XRP’s market sentiment. The possibility of dropped appeals and penalty releases could reduce uncertainty, potentially boosting investor confidence. These legal factors are closely watched by market participants for their impact on XRP’s price stability.

Frequently Asked Questions

What support levels should traders watch for XRP in August 2025?

Traders should closely monitor the $2.40 support zone, as it represents a significant accumulation area that could prevent further declines and offer a buying opportunity.

Why is XRP’s price influenced by legal updates?

Legal updates, especially regarding the SEC case, affect market confidence and price volatility. Positive developments can reduce uncertainty and encourage investor participation.

Key Takeaways

• TD Sequential Sell Signal: Indicates renewed selling pressure on XRP, emphasizing the $2.40 support level.
• Technical Patterns: Falling wedge and EMA support suggest a potential 20% upside if $3.07 resistance is broken.
• Market Influences: Legal updates and ETF approval prospects remain central to XRP’s price outlook.

Conclusion

XRP’s price action is currently shaped by critical technical signals and significant legal developments. Holding above the $2.40 support is essential for stability, while a breakout above $3.07 could trigger substantial gains. Investors should monitor these factors closely as the August 15 SEC deadline approaches, positioning themselves for potential market shifts. COINOTAG will continue providing expert analysis to guide informed decisions.