XRP's price has slipped by 5% in the last 24 hours to $2.89. At first glance, this seems to be just another dip in a volatile market, but the charts indicate potentially significant trends.
Warning from the Weekly Chart
Technical analysts have been sounding the alarm for weeks regarding signs of weakness in the weekly chart. A classic bearish divergence is observed: while XRP's price rises to new highs, the Relative Strength Index (RSI) is declining.
This split between price and momentum often suggests that the rally is losing steam. The last time a similar pattern was observed was in late 2020, leading to a painful correction stretching over several months. Currently, XRP appears strong on the surface, but momentum is fading beneath. Analysts note that this does not imply an immediate crash but raises the chances of a deeper pullback as we enter September and October.
Daily View: Sideways Movement and Pressure
On the daily chart, XRP has been in a bearish structure since breaking below $3.40. The coin is caught in a sideways range, with buyers and sellers battling between:
* Support at $2.90 to $3.00 (immediate cushion), then $2.75, and a deeper zone at $2.55 to $2.62. * Resistance at $3.10 to $3.15 and a heavier ceiling between $3.35 to $3.40.
Currently, the $2.90 level is acting as a critical line. If XRP manages to hold above it, the token could continue to move sideways for a while. However, a confirmed breakdown below this support could drag the price down towards $2.75 or lower.
Echoes of Early 2024
XRP's current setup mirrors events earlier this year. From January to March, XRP traded in a choppy sideways range before declining. The current structure looks almost identical.
Small bounces may occur in the short term, but a heavier trend could pull XRP down over the next weeks.
The current situation in the XRP market warrants close attention. Signs of weakness on the weekly charts and bearish trends on the daily charts may indicate upcoming price fluctuations. Investors should carefully monitor changes in the token's dynamics in the coming months.
