XRP Analysis: Ripple Faces Losses Amid Bearish Signals

XRP is facing mounting pressure as it navigates a critical moment in its price structure. The Ripple-backed digital asset has seen declining momentum in both USD and BTC pairs, and recent technical signals highlight deepening bearish sentiment among traders.

XRP/USD Technical Overview

On the daily time frame, XRP’s performance against the US dollar remains confined within a descending channel, a pattern it has followed since peaking earlier this year. The price action is currently squeezed between a declining resistance line from its 2024 highs and a firm horizontal support around the $1.60 mark.

XRP recently slid below significant psychological and technical support near the $2 threshold, triggering stops and sparking renewed selling interest. As a result, the asset is now trading beneath both its 100-day and 200-day moving averages, which are presently situated between $2.20 and $2.40. This is typically a bearish sign, underscoring the weakening momentum. Adding to the gloomy outlook, the daily Relative Strength Index (RSI) hovers around 34, indicating subdued buying activity and reinforcing ongoing range-bound behavior.

If bearish pressure persists and the $1.95 level gives way, the next notable support area lies near $1.60, a zone that has historically attracted bidding interest. On the flip side, any attempt to mount a recovery would require a convincing breakout above the $2.40 resistance level. Such a move would also need to reclaim the mentioned moving averages, which may act as dynamic resistance. Until that scenario materializes, XRP is expected to remain neutral to slightly bearish, favoring strategies such as range trading over trend following.

XRP/BTC Chart Review

Compared to Bitcoin, XRP has been steadily losing strength since March. The token has been forming lower highs and lower lows, creating a textbook bearish pattern. Both the 100-day and 200-day moving averages, located near the 2,400 SAT level, are trending downward. This downward slope follows a bearish crossover that occurred earlier, further emphasizing declining momentum in the XRP/BTC pair.

The RSI on this chart is also stuck near 32, reflecting significant underperformance relative to Bitcoin. This grim outlook suggests that XRP has been lagging well behind the broader crypto market gains seen in 2024.

Currently, the pair is inching closer to a previously unfulfilled fair value gap (FVG), created during XRP’s sharp rally in late 2024. This gap area, situated just below 1,900 SAT, may serve as a potential support zone where bulls could attempt a bounce. If such a bounce occurs, the first notable area of resistance lies at 2,200 SAT. A solid break above this point could shift short-term sentiment to the upside. However, until that level is surpassed, the market structure remains firmly tilted towards the bears.

Overall, XRP is navigating a pivotal point in its technical landscape. Both its USD and BTC pairs suffer from declining momentum, and without a significant bullish breakout, the asset is likely to continue experiencing downward or sideways movement in the near term.

Related: Expert Advice: Sell XRP If You’re Confused

Source: Ripple Price Analysis: XRP Taps $2 But How Low Can it Go? via CryptoPotato.