XRP May Face Further Decline as Selling Pressure Grows and Technical Indicators Turn Bearish

• Recent trends indicate that XRP is poised for further declines, with significant bearish sentiment prevailing among traders.

• XRP has experienced a notable 21.08% drop over the past week, raising concerns among investors regarding the asset’s future performance.

• According to COINOTAG, the market sentiment has turned increasingly bearish, fueled by declining technical indicators and increased selling pressure.

This article explores XRP’s recent performance metrics, highlighting key support levels and market dynamics impacting its price trajectory.

XRP Faces Bearish Pressure and Key Support Levels

XRP is currently exhibiting a downturn, heavily influenced by recent market dynamics. The asset has breached several critical support levels—2.86, 2.69, and 2.53—as indicated by Fibonacci retracement lines, which project potential future price barriers. As XRP nears further decline, analysts are closely monitoring its behavior around 2.296 and 1.995. A further breach beneath these levels could signify even graver conditions for XRP and lead to more significant price corrections.

Technical Indicators Point Towards Continued Decline

The **Relative Strength Index (RSI)** and the **Average Directional Index (ADX)** suggest that XRP is firmly within a bearish trend. Presently, the RSI reads **37.18**, indicating that the asset is under pressure, hovering below the neutral 50 benchmark. This positioning may signal a temporary uptick before trending downward continues. If XRP forms a lower low, this could further reinforce the downward trajectory.

Source: TradingView

Meanwhile, the ADX currently at **28.21** indicates a strong market trend, suggesting that the downward pressure on XRP may persist. Continuous upward movement in the ADX would confirm that XRP remains on a descent, making external monitoring of these indicators essential.

Market Dynamics: Spot and Derivative Influence on XRP Prices

Market analysis reflects an interesting shift in the behavior of both spot and derivative traders. The exchange netflow data illustrates a predominantly selling sentiment among spot traders, with $17.60 million worth of XRP sold in just the past 24 hours. This selling pressure contributes to growing market skepticism about XRP’s immediate future.

Source: Coinglass

In conjunction, derivative traders are also exhibiting a bearish stance, as evidenced by the negative Funding Rate. This condition implies that sellers are dominant in the market, exerting downward pressure due to low confidence levels.

Conclusion

The convergence of technical analysis and trader sentiment suggests a prevailing bearish outlook for XRP. Traders and analysts alike must remain vigilant as fluctuations around known support levels could signal critical turning points for the asset. The market environment and trader psychology will likely dictate XRP’s price movements in the immediate term, making continuous monitoring essential for stakeholders.