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Key Takeaways:
- XRP is hovering near the crucial $3 support after a 3% daily drop.
- Weekly chart shows bearish divergence that may trigger further downside.
- Market pressure from high Bitcoin dominance is weighing on altcoin momentum.
XRP has dropped over 3% in the past 24 hours, currently trading around $3.01—just above a critical psychological and technical support level. If XRP closes below the $3 threshold, analysts warn of further downside risks in the short term.
Bearish Divergence Raises Red Flags
Technical analysis of XRP’s weekly chart reveals a troubling bearish divergence. While the price has pushed to higher highs in recent weeks, the Relative Strength Index (RSI) is forming lower highs. This divergence often signals a weakening trend and precedes corrections.
The current weekly candle is set to close in just over three days. If it finishes in the red, it would confirm a second lower high on the RSI, strengthening bearish momentum. Such a development could pave the way for a deeper retracement in the coming weeks or even months.
Market Conditions Not Favoring Altcoins
A major factor limiting XRP’s upside potential is Bitcoin’s market dominance. As long as Bitcoin continues to command a large share of the total crypto market cap, altcoins like XRP remain under pressure. A decline in BTC dominance could spark an altcoin rally, but for now, that shift has yet to occur.
Also Read: XRP Gains White House Recognition as Price Eyes Breakout Above $3.33
Sideways Action May Persist
In the short term, XRP remains locked in a narrow trading range between $2.90 and $3.40. The price continues to bounce between strong support and resistance levels, with no clear breakout in sight. Traders should prepare for continued consolidation in the near future, unless external catalysts drive a decisive move.
XRP’s drop toward the $3 support level and developing bearish divergence on the weekly chart indicate potential short-term weakness. While broader bullish trends aren’t fully invalidated, XRP bulls need to defend key levels in the coming days to avoid a more pronounced pullback.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
