XRP prices fall below key support levels as the broader crypto market begins to weaken amid liquidation-driven selloffs. What drives this current recession and will there be an opportunity to rebound?
summary
- The XRP price fell below the $3.00 level as it dragged the token into $2.80 support with heavy liquidation and profits.
- Despite the ETF buzz and upcoming launch, XRP is seeing an outflow of $68.63 million, further promoting downside concerns as it does not hold a key resistance zone.
Over the past few hours, XRP prices have fallen below $3.00 as they barely multiplied the $2.80 range. On September 25th, tokens fell 1.09%, continuing their downward trend since the crypto market mass liquidation earlier this week.
Before the drop, the XRP (XRP) was moving relatively strong. Some traders are probably bringing their profits closer to resistance levels. Technical analysts say the XRP did not exceed the $3.18-$3.20 range was reduced to $2.75, poses a potential downside risk.
Despite the Rex-Soprey XRP ETF splashed on its debut, the token reportedly weighs around $68.63 million in the past few days. The XRP ETF news, which is reportedly going to market in October thanks to SEC’s fast trucks, does not seem to have a major impact on XRP prices.
So far, the XRP price has exceeded the $2.80 threshold. However, it is still unclear whether that will continue.
The fact that XRP failed to exceed $3.00 despite strong ETF-related topics and the influx at the beginning of the month underscores the weakness of investor trust. Market participants appear to be reducing exposure and increasing weight through downward spirals.
XRP Price Analysis
So far, XRP prices have shown clear signs of a recession after failing to maintain themselves beyond the $2.95-$3.00 range. Additionally, the latest decline from the $2.99 level coincided with a broader slump across the crypto market, reducing XRP from $2.82 to a $2.84 support area.
Based on current price action, traders appear to be reacting to price crashes with a lot of sellouts and liquidation as bullish momentum from last week began to decline.
The 30-day moving average is currently only $2.84 above XRP’s current trading price. This below moving average trade indicates a bearish short-term trend, suggesting that sellers are in control.
Meanwhile, sustained near below the $2.80 level can open the door for potential targets to decline further with potential targets near $2.70 if market sentiment is weak. Conversely, regaining MA can be an early sign of stabilization.
Coincidentally, the relative strength index has dropped sharply from the level that was over-acquired earlier this week, now at around 38. The move suggests that sales pressure is growing, but it is approaching sales territory. A further downwards towards 30 could indicate seller fatigue, possibly causing bounces of relief.
In the short term, $2.80 support has become an important decision line. If it breaks down, it will confirm a bearish continuation and push the XRP price further down the shelf, but holding it above it could potentially give you a base of rebound. Whether XRP can regain the $2.89-$2.90 range could determine whether today’s crash will be extended or the price will remain stable.