XRP (XRP-USD) has seen a notable decline of approximately 5% in the past 24 hours, currently trading around $2.80. This downturn is significant as it failed to maintain the psychologically important threshold of $3, which is not merely a numeric level but an emotional checkpoint for many investors. Falling below this mark suggests a shift in market momentum, raising concerns about the sustainability of its recent rally.
Technical analysts are observing the formation of a classic descending triangle on XRP’s chart. This pattern indicates that while buyers are consistently trying to maintain support, they are facing increased selling pressure at lower highs. The critical support level stands at around $2.75. If XRP’s price closes below this level, analysts warn that a sell-off could drive the price down to around $2.07, which would represent a drop of more than 25% from its current position.
In addition to technical patterns, profit-taking behaviors among investors are placing additional pressure on XRP. The Net Unrealized Profit/Loss (NUPL) metric indicates that over 94% of XRP holders are currently in profit. While this might seem advantageous, it can create selling pressure as many investors look to cash out their gains. Currently, XRP’s NUPL is in the 0.5–0.6 zone, a level associated with previous local peaks that have often preceded sharp corrections in prices.
Despite these concerning indicators, some analysts maintain a bullish outlook on XRP. They contend that the current pullback might merely represent short-term noise within a larger bullish trend. Weekly and monthly charts still show positive structures forming. For instance, CryptoBull speculates that XRP could rise to $5 by October, viewing the recent dip as a technical correction rather than a trend reversal. Egrag Crypto highlights a potential ascending triangle in the monthly chart, suggesting a target as high as $27. Others, including XForceGlobal, utilize Elliott Wave analysis to forecast a cycle top exceeding $20.
The key question now revolves around whether XRP can reclaim the $3 level or if resistance will persist. Should buyers fail to push the price back above this threshold, attention will turn to the $2.75 support level. A breakdown below this could lead XRP closer to $2, potentially erasing much of the recent gains. Conversely, some traders are optimistic that the introduction of new ETFs and a more accommodating monetary policy from the Federal Reserve could rekindle demand for risk assets like XRP.
At present, XRP’s position is a tug-of-war between short-term weakness and long-term optimism, with the outcome likely to shape its future trajectory. Currently, the coin is trading at $2.86.
