In the first week of August, XRP attracted investor attention due to a sharp fall below the $3 support level. This trend raises concerns about a potential price drop to $2.
Weekly Chart Signals Decline
The red candle below $3 on the weekly chart clarifies the loss of support while highlighting a downside discrepancy in the Relative Strength Index (RSI). This dual signal often led to a few weeks of weak performance in past data, bolstering sellers’ confidence. Investors are thus focused on the next critical level, $2.50, and the reaction the price will follow at this point.
Key Support Lost in Daily Timeframe
In the daily chart, after repeatedly testing the $2.90 low, it finally broke, rapidly escalating selling pressure. This break created a notable gap below $2.62, providing a corridor for accelerated downward movement. Analysts describe this region as the 'last line of defense' for short-term buyers.
General Trends in the Cryptocurrency Market
In the broader market, expectations of interest rate cuts coupled with regulatory uncertainties drove Bitcoin's market share to a three-week high. Historical data reveal that altcoins lost momentum during such periods. Thus, the technical weakness is complemented by fundamental factors, reinforcing XRP’s downward trend and potentially limiting short-term upward moves.
Thus, XRP continues to face pressure from sellers and market factors, underscoring the importance of monitoring price movements in the near future.
