XRP's Bearish Technical Setup: Why Traders Should Prepare for a Near-Term Pullback

The XRP price action in early September 2025 has painted a cautionary technical picture for traders. While bulls remain hopeful for a breakout above $3.10, the confluence of bearish momentum indicators and fragile support levels suggests a near-term pullback is not only possible but increasingly probable. Let’s dissect the data and what it means for short-term positioning.

Bearish Momentum Gains Ground

The Relative Strength Index (RSI) for XRP currently sits in neutral territory at 43–44, neither overbought nor oversold [1][2][3]. However, this neutrality masks a critical detail: the RSI has failed to close above 50 for three consecutive weeks, a sign of waning bullish conviction. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains negative, ranging between -0.0087 and -0.0275 [1][3][4]. This bearish divergence—where price action and momentum indicators move in opposite directions—signals a potential reversal in the making.

Data from blockchain analytics platforms further underscores the bearish tilt. XRP is trading near the lower Bollinger Band at $2.70, a level that has acted as a temporary floor but shows no signs of robust buying interest [1][3]. A breakdown below this level would likely trigger a cascade of stop-loss orders, pushing the price toward $2.50 [1][3]. Conversely, a breakout above the upper Bollinger Band at $3.10 could reignite bullish sentiment. Yet, the 20-day Simple Moving Average (SMA) at $2.90 and the $3.13 resistance level remain formidable hurdles [1][4].

Key Risks for Traders

The most immediate risk lies in the fragility of the $2.70 support level. If this level fails to hold, XRP could enter a freefall into the $2.50–$2.60 range, a scenario already flagged by multiple analysts [1][3]. This is compounded by the fact that volume has not expanded meaningfully during recent bullish attempts, a red flag for traders [4]. Without a surge in buying pressure, the asset is likely to remain range-bound or trend lower.

AI-driven forecasts add another layer of concern. While some models predict a $2.4–$3.58 range for 2025 [5], the current technical setup suggests the lower end of this range is more probable in the short term. This is particularly true if macroeconomic conditions—such as rising U.S. interest rates—continue to weigh on risk assets.

Strategic Implications

For traders, the message is clear: position with caution. Short-term strategies should prioritize risk management by setting tight stop-loss orders below $2.70. Long-term holders, meanwhile, may want to wait for a confirmed breakout above $3.13 with accompanying volume expansion and RSI above 50 before re-entering [1][4].

Conclusion

XRP’s technical profile in September 2025 is a textbook example of a bearish consolidation phase. While the asset is not in freefall, the combination of weak momentum indicators, fragile support levels, and lackluster volume suggests a near-term pullback is imminent. Traders who ignore these signals risk being caught off guard by a sharp decline. As always, vigilance and adaptability will be key in navigating this volatile market.

**Source:[1] XRP Price Prediction: Surging to $3.12-$3.70 Despite Bearish ... [https://www.btcc.com/en-US/square/blockchainNEWS/912509][2] XRP Price Holds Above $2.80 Support Despite Bearish ... [https://blockchain.news/news/20250907-xrp-price-holds-above-280-support-despite-bearish-september-start][3] XRP Price Prediction: Ripple Targets $3.20-$3.50 Breakout ... [https://thecurrencyanalytics.com/altcoins/xrp-price-prediction-targeting-3-20-3-50-breakout-within-30-days-195047][4] XRP Price Prediction: Targeting $3.12-$3.70 Despite ... [https://blockchain.news/news/20250906-price-prediction-forecast-xrp-targeting-312-370-despite-bearish-momentum][5] Ripple (XRP) Price Prediction & Forecast 2025, 2026 - 2030 [https://coinfomania.com/xrp/predictions/]