XRP Price Review: Analyzing the Recent 9% Decline to $2
An in-depth examination of XRP's recent price movement and technical indicators following a significant drop.
XRP has faced difficulties in gaining bullish momentum after its mid-year rally dissipated. Despite some positive market sentiment in the cryptocurrency realm, this token is still hindered by technical resistance and poor performance against both USD and Bitcoin (BTC). The asset remains locked within a macro downward trend, noticeably showing signs of fatigue near crucial moving averages and resistance levels.
Technical Insights
The USDT Pair
In relation to USDT, XRP continues to operate within a broad descending channel, consistently respecting both its upper and lower levels. Following a rejection from the $2.50 resistance area last month, XRP’s price reversed and is now hovering around $2.00.
The 100-day and 200-day moving averages are moving downward, serving as dynamic resistance, and a bearish crossover has been observed near the $2.60 level. The Relative Strength Index (RSI) is dropping below 40, indicating weak momentum. This structure suggests that unless buyers reclaim the $2.50 mark and break free from the descending channel, the bearish trend will persist, with $1.80 as the next potential support level.
XRP Chart
The BTC Pair
When compared to Bitcoin, XRP initially broke above the 100-day and 200-day moving averages; however, this breakout was not sustainable. The price has dropped below both averages as well as the 2,400 SAT mark. The RSI is also decreasing, suggesting a bearish rejection from the supply zone between 2,400 and 2,500 SAT.
If XRP closes back under this significant area, it could indicate a deviation with a potential downside target of 2,000 SAT. Conversely, to regain bullish momentum, XRP needs to reclaim and maintain a position above 2,500 SAT.
XRP BTC Chart
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