The XRP price started the week on a bearish note, despite some optimism over the weekend. After facing rejection for the second time this month, the price entered a descending consolidation phase, hovering around key support levels. The increased selling pressure has raised concerns of a potential 10% to 12% pullback in the near future.
Today, XRP slipped around 3-4% to trade near $2.85, following profit-taking activities after the recent spot XRP ETF launch. Over $15 million worth of long positions were liquidated, leading to a further decline in the price. The broader weakness in the crypto market, with Bitcoin and Ethereum also dropping over 2%, added to the negative sentiment. Technical charts indicate strong resistance levels between $3.30-$3.50, keeping XRP range-bound. Macroeconomic uncertainty and cautious risk appetite continue to weigh on altcoins, with traders eagerly awaiting a breakout above resistance levels for a bullish momentum shift.
The latest chart analysis shows XRP struggling to maintain its short-term trendline support, with the price losing momentum after facing multiple rejections near the $3.35-$3.63 resistance range. The breakdown was accompanied by a spike in volume, confirming the presence of selling pressure. The next crucial support level is around $2.65-$2.70, where the 200-day EMA is located, potentially acting as a strong demand zone. The Chaikin Money Flow indicator is slightly negative, indicating outflows from the asset. A bounce from the support zone could lead to a retest of $3.02, while a failure may expose XRP to further downside towards $2.50. Bulls would need a solid close above $3.00 to regain control of the price action.
In conclusion, XRP’s recent breakdown below $3.00 signals short-term weakness, but the price may remain range-bound if the $2.65 support level holds. A bounce from this support area could push XRP back towards $3.02, with a successful breakout targeting higher resistance levels later in the month. However, a failure to defend $2.65 could trigger a deeper decline towards $2.50. Traders are advised to monitor volume and the CMF indicator for signs of accumulation before expecting a sustained recovery. September is shaping up to be a critical month for XRP’s next major move in the market.