In the first week of August, XRP alarmed investors by dropping below the crucial $3 support level. The emergence of a possible negative divergence in the weekly chart signals a strong pressure that could erode the price by up to 30%, pulling it back to $2. Analysts emphasize that the initial defense lies in the $2.55 – $2.62 range, noting that the risk increases as the weekly close approaches amidst a broader market downturn.
ContentsWeekly Chart Signals DeclineKey Support Lost in Daily Timeframe Weekly Chart Signals Decline
The red candle below $3 on the weekly chart clarifies the loss of support while highlighting a downside discrepancy in the Relative Strength Index (RSI). This dual signal often led to a few weeks of weak performance in past data, bolstering sellers’ confidence. Investors are thus focused on the next critical level, $2.50, and the reaction the price will follow at this point.
Generally, XRP coin’s price movements are shaped by sharp rallies rather than slow declines. However, due to weak momentum, the support from volume clusters can stay limited, potentially causing the price to dip to the $2 region in just a few trading sessions. This volatile nature necessitates broader stop distances in short-term strategies, significantly reducing risk appetite.
With the unconfirmed break of $3, liquidations in futures increased, and the funding rate shifted in favor of sellers.
Key Support Lost in Daily Timeframe
In the daily chart, after repeatedly testing the $2.90 low, it finally broke, rapidly escalating selling pressure. This break created a notable gap below $2.62, providing a corridor for accelerated downward movement. Analysts describe this region as the “last line of defense” for short-term buyers.
In the broader market, expectations of interest rate cuts coupled with regulatory uncertainties drove Bitcoin $114,029’s market share to a three-week high. Historical data reveals that altcoins lost momentum during such periods. Thus, the technical weakness is complemented by fundamental factors, reinforcing XRP’s downward trend and potentially limiting short-term upward moves.
Nevertheless, a rapid reclaim of $3 could trigger momentum algorithms creating short-lived rally reactions. Yet, current indicators do not alleviate expectations that the psychological $2 threshold will be tested within the coming weeks. Consequently, investors may continue to view sharp upward bounces as selling opportunities.
According to data from CryptoAppsy, XRP is trading at $2.86, reflecting a 3.93% decline over the last 24 hours.
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