Analyst Steph Is Crypto raised concerns about the state of the XRP market, pointing to loss of momentum and changes in technical indicators.
XRP's Technical Analysis
In his recent update, Steph Is Crypto presented a weekly chart of XRP, noting a significant loss of momentum. He highlighted a long-term upward trend line tested but not decisively broken. Established in late 2024, this trendline has capped XRP's price, including its all-time high of $3.65 in July.
More importantly, the chart reveals a diverging trend in the Relative Strength Index (RSI). While the price attempted to rise to new highs, the RSI consistently produced lower highs. At the latest weekly close, RSI sits near 55, still above neutral territory but significantly below earlier readings above 70.
This bearish divergence, combined with softening momentum, raises concerns in Steph's assessment.
Implications for XRP's Price
Since the end of August, XRP has struggled to hold above the $3 mark. Market volatility has led to sharp intraday price movements. On September 7, increased buying pressure and optimism about potential interest rate cuts by the Federal Reserve pushed the token to $2.91 before it settled closer to $2.88.
That movement generated short-term optimism, yet the overall picture over the weekly timeframe appears less convincing. Steph's chart emphasizes that despite occasional surges, overall momentum has weakened. The repeated rejection near the upper resistance line, combined with declining RSI peaks, may suggest that buyers are losing conviction.
Market Context and Conclusion
The broader market context remains significant. XRP has managed to hold above $2.7, avoiding a deeper breakdown for now. However, it has also struggled to reclaim and maintain levels above $3 in recent weeks. While XRP has demonstrated the ability to recover from sharp declines, the underlying technical indicators suggest caution.
The surge on September 7 has renewed investor optimism but if the RSI trend continues downward, further declines could occur as the bearish divergence strengthens even if the price range remains relatively stable in the short term.
Steph Is Crypto's analysis highlights the importance of paying attention to XRP's technical indicators. Given the current risks and volatility, the market demands caution from investors.
