Ripple (XRP) Price Analysis: Bulls in Trouble, Must Quickly Regain the $3 Level

CN
2 hours ago

Key takeaways

The XRP price must reclaim the $3 support level to avoid a deeper pullback towards $2.24.

The CVD indicator for spot buy orders continues to be negative, indicating that demand is weakening.

XRP performed weakly on Monday, dropping 5% in the past 24 hours, trading at $2.97. Multiple technical and on-chain indicators show that this second-ranked altcoin must reclaim the $3 support level to avoid a deeper pullback towards $2.24.

The latest round of selling has caused the XRP price to fall below the psychologically significant $3 level.

Analysts point out that the last time XRP closed below this level was in January, followed by a 50% drop in April to $1.61.

If the daily close falls below $3, it could trigger a similar magnitude of price decline, with the first area of concern located between the 50-day simple moving average at $2.94 and the local low of $2.72 reached on August 2.

The second important support area is between the 100-day moving average at $2.60 and the 200-day moving average at $2.45. If this support level is lost, it will bring $2.24 into focus, which is precisely the starting point of the rally in July.

Data from Cointelegraph Markets Pro and TradingView indicates that XRP trading has broken below the lower trendline of a symmetrical triangle on the daily chart, as shown in the image below.

If it fails to close above the triangle support line at $3.00, the price will face further risks of dropping to $2.25, a 25% decline from the current level.

The relative strength index shows a downward trend, dropping from 61 to 45 over the past week, indicating that bulls have lost momentum.

Analysis of the 90-day cumulative volume delta (CVD) shows that sell orders (eating sell orders) are once again dominant. The CVD indicator measures the difference between buying and selling volumes over a three-month period.

Since July 28, selling pressure has dominated the order book, following XRP/USD's currency reaching a multi-year high of over $3.66 on July 18.

Market experts state that the negative CVD (red bars in the chart below) indicates that traders are taking profits, reflecting a weakening demand and that sellers have begun to take control of the market.

If the CVD remains in the red zone, it means sellers are firmly positioned, which could lay the groundwork for a new round of declines, as seen in historical pullbacks.

As reported by Cointelegraph, at the current price, 94% of XRP supply is in profit, a level that has historically shown a high correlation with price tops.

Related: SEC delays decisions on Truth Social, Solana (SOL), and Ripple (XRP) ETFs until October

This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.

Original article: “XRP Price Analysis: Bulls Are in Trouble and Must Quickly Reclaim $3”

免责声明:本文章仅代表作者个人观点,不代表本平台的立场和观点。本文章仅供信息分享,不构成对任何人的任何投资建议。用户与作者之间的任何争议,与本平台无关。如网页中刊载的文章或图片涉及侵权,请提供相关的权利证明和身份证明发送邮件到support@aicoin.com,本平台相关工作人员将会进行核查。

理财年化200% !注册返10%+$600
Ad
Share To
APP

X

Telegram

Facebook

Reddit

CopyLink