XRP News Today: XRP Dips 16% From July High But Signs Signal Potential Turnaround

XRP entered August with a decline below the $3.00 level, reaching an intraday low of $2.89 before a modest recovery. The broader cryptocurrency market's downturn has pushed XRP nearly 16% below its July 18 high of $3.66. Despite the bearish momentum, signs of weakening selling pressure and early bullish divergences suggest a potential turnaround could be approaching [1].

Key indicators point to cautious optimism. A bullish divergence on the four-hour chart—where price forms lower lows but the RSI forms higher lows—indicates the downward trend may be losing strength [1]. A Dragonfly Doji candlestick on the daily chart further supports this view, historically signaling a potential reversal [1]. Additionally, XRP is forming a falling wedge pattern, and a confirmed breakout from this could push the price toward $3.60–$3.65, with the $3.07 Fibonacci retracement level acting as initial resistance [1].

The derivatives market has shown instability, with $41.4 million in liquidations in the past 24 hours, primarily in long positions. This suggests traders who anticipated a price rise were caught off guard by the recent drop [1]. However, open interest has declined from $10.94 billion to $8.13 billion, which may reduce future volatility and create a more stable environment for a potential rally [1].

Analysts are closely watching key support and resistance levels. The $2.76 (50-day EMA) and the $2.79–$2.95 range are critical for short-term stability. A successful defense of these levels could lead to further gains. On the upside, $3.07, $3.32, and $3.65 are the next resistance targets [1].

Meanwhile, investor sentiment remains mixed. The Estimated Leverage Ratio (ELR) for XRP has dropped to 0.36, its lowest weekly close in a month, signaling reduced risk appetite and cautious trading behavior [1]. Negative netflows exceeding $222 million since July 29 highlight strong selling pressure and weak buying interest [1]. If XRP fails to hold the $2.71 support level, it could decline further toward $2.50. Conversely, a breakout above $3.00 could spark a rally toward $3.39 [1].

Long-term holders remain optimistic, particularly given Ripple’s ongoing legal proceedings and the potential for an XRP ETF. Institutional interest in the XRP Ledger is also being monitored as a possible catalyst for further appreciation [1]. However, analysts remain divided on short-term direction, with technical indicators like the RSI and MACD showing mixed signals. A sharp rebound could trigger a short squeeze if XRP quickly reclaims the $3.00 level [1].

The next few days will be critical for XRP. A breakout above $3.07 could confirm a bullish reversal and restore upside momentum, positioning the asset for a potential rally in the coming weeks [1].

Source: [1] XRP Price Prediction: XRP Begins August With a Dip, but ... (https://bravenewcoin.com/insights/xrp-price-prediction-xrp-begins-august-with-a-dip-but-divergence-signals-a-surprise-upside)