XRP is undergoing a 22% correction after peaking near $3.70, with bearish momentum indicators and critical support at $2.65 closely monitored to determine if further declines will occur.
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XRP dropped 22% from its $3.70 high, signaling short-term exhaustion via a TD Sequential 9-count and rising sell volume.
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RSI at 45.16 and a bearish MACD crossover indicate weakening momentum as price tests the key $2.65 support level.
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If $2.65 support fails, XRP could fall to $2.30–$2.40 or even $1.93, though the broader trend remains bullish pending consolidation.
XRP price corrects 22% after $3.70 peak, with bearish signals and $2.65 support critical. Stay updated on XRP trends and market shifts.
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XRP price correction highlights short-term weakness after a strong rally, emphasizing key support and resistance levels.
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Momentum indicators such as RSI and MACD confirm the retracement phase, signaling cautious market sentiment.
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Expert analysis from COINOTAG highlights the importance of $2.65 support in maintaining XRP’s bullish structure.
Discover XRP’s latest pullback and key support levels in this detailed analysis by COINOTAG. Stay informed and prepared for market movements.
What Is Causing XRP’s 22% Pullback After the $3.70 Peak?
XRP’s 22% pullback is driven by short-term momentum exhaustion, confirmed by a TD Sequential 9-count and increased selling volume. After reaching a high near $3.70, the digital asset faced strong resistance and bearish signals, prompting a correction phase. This pullback reflects market caution following an overstretched rally.
How Do RSI and MACD Indicators Reflect XRP’s Current Momentum?
The RSI has dropped to 45.16 from overbought levels above 70, indicating growing bearish pressure without reaching oversold territory. Simultaneously, the MACD line sits below the signal line, with a negative histogram value, confirming weakening momentum and increased downside risk. These indicators suggest that XRP’s price may continue to consolidate or decline unless buyers regain control.
What Are the Key Support and Resistance Levels for XRP?
XRP faces resistance between $2.95 and $3.00, a zone that previously served as support but now acts as a barrier. The recent peak near $3.70 also showed strong rejection. On the downside, $2.65 is a critical support level; a break below this could lead to further declines toward $2.30–$2.40 or even $1.93, aligned with historical volume accumulation zones. Maintaining $2.65 is essential to preserve the broader bullish trend.
| Price Level | Significance | Impact |
|---|---|---|
| $3.70 | Recent Peak | Triggered 22% pullback |
| $2.95–$3.00 | Resistance Zone | Former support now barrier |
| $2.65 | Key Support | Breakdown risks deeper decline |
How Does Market Volume Influence XRP’s Price Action?
Volume analysis shows increased selling activity during the pullback, with daily volume reaching 46.06 million. This heightened volume confirms stronger bearish sentiment as buyers struggle to maintain price levels. Volume accumulation zones around $2.30–$2.40 provide potential support if $2.65 fails, highlighting the importance of volume in validating price movements.
What Is the Broader Trend Outlook for XRP?
Despite the current correction, XRP maintains a broadly bullish pattern on higher timeframes. Consolidation around key support levels is necessary to stabilize price action and prepare for potential upward moves. Market participants should watch $2.75, $2.50, and $2.30 as critical levels that will influence XRP’s next directional move.
Frequently Asked Questions
What technical indicators signal XRP’s weakening momentum?
XRP’s momentum is weakening as shown by the RSI dropping to 45.16 and a bearish MACD crossover, both indicating increased selling pressure and a potential continuation of the correction.
How can XRP’s support levels affect its price movement?
If XRP holds above $2.65, it may consolidate and prepare for a rally. However, breaking this support could lead to deeper declines toward $2.30 or lower, signaling bearish market sentiment.
Key Takeaways
- XRP is correcting 22% after a peak near $3.70: Momentum exhaustion signals short-term weakness.
- Technical indicators confirm bearish pressure: RSI and MACD show declining momentum.
- Critical support at $2.65: Holding this level is vital to prevent deeper declines.
Conclusion
XRP’s recent 22% pullback after peaking near $3.70 reflects a short-term correction driven by momentum exhaustion and increased selling volume. Key technical indicators like RSI and MACD confirm weakening momentum, while the $2.65 support level remains crucial for maintaining the broader bullish trend. Market watchers should focus on consolidation around this zone to gauge XRP’s next move, as breaking support could lead to further declines. COINOTAG will continue monitoring developments to provide timely insights.
XRP faces a 22% pullback after peaking near $3.70, with bearish signals emerging and key support at $2.65 under watch.
- XRP dropped by 22% from its $3.70 high; a TD Sequential 9-count and rising sell volume signal short term exhaustion.
- RSI at 45.16 and bearish MACD crossover show weakening momentum as price tests key $2.65 support level.
- If $2.65 breaks, XRP may drop to $2.30–$2.40 or $1.93; broader trend remains bullish but consolidation is needed.
XRP price is undergoing a correction phase after its recent rally peaked near $3.70 in July. The digital asset, which had surged from around $1.85, has lost over 22% in value since reaching its recent high.
According to analyst Ali, a TD Sequential 9-count flashed on the 3-day chart just before the reversal began. This signal, followed by multiple bearish candles, suggests the rally may have exhausted short term momentum.
Resistance Flips to Barrier as Pullback Extends
XRP price shows resistance forming around $2.95 to $3.00, an area that previously acted as support. This change shows weakening market structure. The asset also had strong rejection between $3.40 and $3.70, the recent top zone.
XRP/USDT Perpetual Contract 3-day price chart, Source: Ali on X
The wick heavy peak at these levels confirmed notable selling interest as buyers struggled to push higher. Volume data shows increased activity during the decline, with daily volume at 46.06 million.
The ongoing correction follows a breakout above the $2.20–$2.50 range in mid-July. However, this breakout now appears overstretched, with the pullback cutting deep into recent gains.
RSI and MACD Indicators Point to Weakening Momentum
Momentum indicators further confirm the current retracement trend. The RSI dropped to 45.16, down from an overbought level above 70. This movement below the neutral 50 mark signals growing bearish pressure without yet hitting oversold levels.
XRP/USDT 1-day price chart, Source: TradingView
The MACD also shows a downward movement. The MACD line now is 0.0610, below the signal line at 0.1466, while the histogram holds at –0.0856. This setup shows continued downside risk unless bulls step in to reclaim higher levels.
Market Structure Holds if $2.65 Support Remains Intact
As the asset continues to correct, $2.65 could be the next short term support. A breakdown below this level could lead to a move toward the $2.30–$2.40 region, which aligns with high volume accumulation zones. Additional downside may expose XRP to support near $1.93 if momentum weakens further.
Still, XRP maintains a broadly bullish pattern on higher timeframes, but consolidation is needed to stabilize price action. Support levels at $2.75, $2.50, and $2.30 now be key in determining the next move.
Overall, XRP’s price shows a cooling phase after a strong rally. With indicators flashing short term weakness and resistance levels holding firm, the market focus is now on whether key support zones will prevent a deeper decline.
