- XRP faces critical support test, a breakdown could spark losses.
- Weak volume and RSI hint at potential XRP price drop.
- Will XRP’s support hold or trigger a sharp market retreat?
XRP is teetering on the edge as it approaches a key support level, leaving investors wondering if the cryptocurrency will sustain its upward momentum or face a significant downturn. XRP is now trading at approximately $2.87, just above a pivotal trendline that it has been on since its July breakout. As price movement demonstrates weakness, the days that follow might be game changers for the future of XRP.
The cryptocurrency has failed several times to overcome the resistance range of $3.10-$3.20, implying that the bullish momentum is diminishing. Furthermore, XRP is also testing the lower end of a symmetrical triangle, which is a trend that tends to precede major price changes. The higher the number of times such a level of support is tested, the higher the risk of collapsing and the resultant decrease in price.
If the lower trendline is violated, XRP can undergo a sharp downturn. The nearest downside levels will include the 100-day EMA of $2.76 and, possibly, the 200-day EMA of $2.50. Any breakdown may wipe away much of the XRP profits, particularly after its spectacular surge to a high of over 3.50 over the summer.
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Volume Drop and RSI Point to Bearish Pressure
Another troubling sign for XRP is the decline in trading volume, which typically precedes large price movements. The closer the symmetrical triangle is to the apex, the less trading activity means that a breakout or breakdown is about to occur.
Moreover, the Relative Strength Index (RSI) is now at the level of around 44, which already indicates bearishness. The RSI bounces and goes into oversold territory; the RSI would be interpreted as a further sell-off, meaning the price would fall sharply.
The Market Divided as Critical Support Holds the Key
The market remains split on XRP’s future. Bears contend that failure to break through the resistance level of $3.20 and a fall in liquidity signify that exhaustion is taking hold. Conversely, bulls argue that the sound fundamentals and the increasing adoption of the on-chain of XRP give an excellent base on which further increase can be achieved.
If XRP can sustain above this trendline, a recovery might still exist. However, a breakdown would trigger a major shift in market sentiment and could lead to a significant downturn, erasing much of the recent progress.
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