XRP Faces Potential Correction as $2.90 Support Is Tested Amid Bearish Momentum

• XRP’s recent drop from $3.50 highlights growing bearish momentum, making $2.90 a key support level to watch.

• Technical indicators such as RSI at 51.54 and a MACD crossover below the signal line confirm cooling bullish momentum.

• Trading volume remains active at 21.12 million, but a breakdown below $2.90 could push XRP toward $1.90 if selling pressure intensifies.

XRP correction deepens as $2.90 support is tested; monitor $2.55–$2.40 for potential stabilization. Stay informed with COINOTAG’s latest crypto insights.

Bearish Momentum Builds as XRP Tests Key $2.90 Support

XRP has reversed gains after peaking near $3.50, with the $2.90 level now serving as critical support. This zone corresponds to a previous breakout point and is essential for maintaining short-term bullish control. Recent price action shows three consecutive lower closes and a bearish engulfing candle, signaling that sellers are gaining dominance.

How Do Technical Indicators Reflect XRP’s Current Market Condition?

The Relative Strength Index (RSI) has declined to 51.54 from overbought levels above 70, indicating that bullish momentum is cooling. Additionally, the Moving Average Convergence Divergence (MACD) line has crossed below its signal line, with a histogram reading of -0.0690, confirming increasing downward pressure. These indicators suggest a shift toward bearish market sentiment.

XRP faces correction after mid-July rally, with $2.90 support under pressure and eyes on $2.55–$2.40 as bearish momentum builds.

• XRP’s drop from $3.50 shows bearish momentum, with $2.90 now key support; failure could expose $2.55–$2.40 zone.
• RSI at 51.54 signals cooling momentum, while MACD crossover below signal line confirms rising sell side pressure.
• Volume at 21.12M suggests active trading; breakdown below $2.90 may push XRP toward $1.90 if bearish trend intensifies.

XRP has entered a correction phase after a sharp mid July rally that drove its price from $2.20 to over $3.60. The asset, which peaked above $3.50, has since lost momentum, with its current price just above the key psychological support at $3.00. 

According to analyst Ali from COINOTAG, XRP could find crucial support between $2.55 and $2.40. This potential support zone aligns with previous resistance levels, suggesting a possible stabilization point if the $2.90 support fails.

What Does the $2.55–$2.40 Support Range Mean for XRP’s Price Outlook?

If XRP breaks below $2.90, the $2.55–$2.40 range becomes the next critical support zone. This area previously acted as resistance from February through May and may now provide a foundation for price recovery. Holding this zone could lead to a rebound toward $3.30–$3.50, but sustained selling pressure may push prices further down to $1.90.

How Could Volume and RSI Influence XRP’s Next Moves?

Active trading volume at 21.12 million indicates strong market participation. However, to reclaim bullish momentum, XRP would need an RSI above 55 combined with increased buying volume. Without these signals, bearish trends could persist, making the upcoming sessions crucial for determining XRP’s trajectory.

XRP/USDT 1-day price chart, Source: TradingView

Frequently Asked Questions

What technical indicators suggest XRP’s bearish momentum?

The RSI dropping to 51.54 from overbought levels and the MACD line crossing below its signal line indicate weakening bullish momentum and rising selling pressure.

Why is the $2.55–$2.40 range important for XRP?

This range previously acted as resistance and may now serve as support, potentially stabilizing XRP’s price if the $2.90 level fails to hold.

Key Takeaways

• Correction Phase: XRP is correcting after a strong mid-July rally, with $2.90 as a pivotal support level.
• Technical Signals: RSI and MACD indicators confirm cooling bullish momentum and increasing bearish pressure.
• Support Zones: The $2.55–$2.40 range is critical for potential price stabilization; failure may lead to a drop toward $1.90.

Conclusion

XRP’s price correction highlights the importance of the $2.90 support zone as a key battleground between bulls and bears. Technical indicators and volume trends suggest growing bearish momentum, making the $2.55–$2.40 range the next crucial level to monitor. Investors should watch these support levels closely as they will likely determine XRP’s short-term price direction. COINOTAG will continue providing timely updates on XRP’s market developments.