XRP's Critical $2.9 Resistance: Is a Deep Correction to $2.7 Imminent?

XRP’s recent price action has painted a complex narrative of resilience and vulnerability, with the $2.9 resistance level emerging as a pivotal battleground. Analysts and traders are closely monitoring whether this psychological threshold will hold or collapse, as it could dictate the token’s near-term trajectory. According to Ali Martinez, a prominent crypto analyst, XRP’s repeated failure to breach $2.9—most notably in late August and early September—signals a growing bearish bias. “Two unsuccessful attempts to clear this level suggest a high probability of further downward movement, potentially targeting $2.70,” Martinez noted, emphasizing the importance of confirming a breakdown below $2.9 [1].

CRYPTOWZRD, another influential voice in the crypto community, echoed these concerns but added a nuanced perspective. While acknowledging the token’s current position in a support zone, they highlighted the critical role of the $2.88 resistance level. “Reclaiming $2.88 would be a bullish catalyst, but until then, XRP remains trapped in a consolidation phase,” CRYPTOWZRD stated, noting that a shift in momentum could trigger a rebound [1]. This duality—between bearish exhaustion and potential stabilization—has created a high-stakes environment for traders.

Bearish Momentum and Technical Divergence

Technical indicators further reinforce the bearish case. The Relative Strength Index (RSI) has shown bearish divergence, with momentum declining despite price attempts to recover. As of September 4, the RSI sits at 44.58, a neutral-to-bearish reading that suggests oversold conditions could persist [3]. Meanwhile, the Moving Average Convergence Divergence (MACD) remains in negative territory at -0.0606, though the histogram’s slight compression hints at weakening downward momentum [3].

Volume patterns also tell a cautionary tale. Subdued buying activity during recent declines has raised questions about the strength of bullish participation [2]. A bearish engulfing pattern observed near $2.886 on the 1-hour chart—a classic reversal signal—further underscores short-term rejection of higher prices [1]. On-chain data adds another layer of concern: institutional liquidation flows totaling $1.9 billion since July have pressured XRP below key support levels [4]. However, whale accumulation of 340 million XRP tokens during the decline suggests some institutional confidence in a potential recovery [4].

Support Levels and Strategic Implications

The $2.75–$2.77 support zone has become a focal point for traders. If XRP fails to hold above this range, a deeper correction toward $2.7 could follow, testing the psychological floor identified by Martinez. Conversely, a stabilization in this zone might attract contrarian buyers, particularly if on-chain activity signals a shift in sentiment.

For investors considering entry points, the $2.7–$2.88 range offers both risks and opportunities. A breakdown below $2.75 could trigger a cascade of stop-loss orders, exacerbating short-term pain. However, a rebound from this level—especially if accompanied by a surge in volume and a retest of $2.88—could signal a consolidation phase or even a resumption of the bullish trend seen earlier in 2025 [3].

Contrarian Strategies and Market Realities

While the bearish case is compelling, it is not without caveats. XRP’s recent 25% surge in the past 24 hours, driven by optimism over legal developments and expectations of Gary Gensler’s SEC departure, complicates the narrative [1]. Traders must weigh these macro factors against technical signals. For contrarian investors, the $2.7–$2.88 range could represent a high-probability entry if the price stabilizes, provided it avoids a breakdown below $2.75.

Conclusion

XRP’s $2.9 resistance level has become a symbolic crossroads. A confirmed breakdown would likely accelerate a correction toward $2.7, while a successful rebound could reignite bullish momentum. As the market navigates this critical juncture, traders must remain vigilant to both technical signals and macro developments. For now, the bearish bias appears well-anchored, but the path forward will depend on whether XRP can reclaim $2.88 or stabilize in the $2.75–$2.77 range.

Source:
[1] XRP Price Stumbles at $2.9 – What’s the Next Downside Target? [https://cryptoadventure.com/xrp-price-stumbles-at-2-9-whats-the-next-downside-target]
[2] XRP Trade Ideas — BITSTAMP:XRPUSD [https://www.tradingview.com/symbols/XRPUSD/ideas/?sort=recent&video=yes]
[3] XRP Price Holds Above $2.80 Support Despite Bearish ... [https://blockchain.news/news/20250907-xrp-price-holds-above-280-support-despite-bearish-september-start]
[4] XRP Breaks $2.80 as Bearish September Begins, Oversold ... [https://finance.yahoo.com/news/xrp-breaks-2-80-bearish-072438841.html]