XRP News Today: XRP Drops 3% After 80% Rally, Tests Key Support at $3.45

XRP, the cryptocurrency, has experienced a significant rally over the past two weeks, surging by over 80%. However, as of July 23, the price of XRP is showing signs of short-term exhaustion, trading near $3.45, down nearly 3% on the day. This decline is attributed to bulls losing grip near the upper boundary of a major supply zone, with the token now testing crucial structural support. Indicators suggest mixed momentum, with the intraday structure showing a clear breakdown below a short-term ascending trendline visible on the 1-hour chart. The move follows a double rejection near $3.66, which aligns closely with the top of the red supply zone marked on the daily chart. Price has now fallen back into the previous consolidation band between $3.35 and $3.58.

RSI on the 1-hour chart has dropped to 38.94, suggesting weakening bullish pressure, while MACD shows a fading bullish crossover with histogram bars sliding toward negative territory. The rejection also invalidated the rising channel, and price is now testing the base of a horizontal range. The 4-hour chart confirms this with XRP trading below the 20 EMA ($3.4690) and just above the 50 EMA at $3.2658. Bollinger Bands are tightening, indicating a potential volatility expansion. With candles beginning to pierce the lower band ($3.37), there is risk of a sharper retracement if buyers do not step in.

The daily chart shows XRP hitting a red volume cluster between $3.58 and $3.66, the same area that marked a long-term top earlier in 2024. The inability to break and close above this band triggered profit-taking and a wave of short orders. Volume Profile confirms this resistance, with the POC aligning just below $3.60. Meanwhile, Smart Money Concepts suggest price is entering a mid-cycle correction. Trendline breaks and failure to hold recent CHoCH levels indicate a likely shift in short-term flow.

Derivatives data shows a -3.17% drop in open interest (to $10.63B), even as volume rose by 15.48% to $21.1B. This indicates participants are closing long positions while engaging in short-term trades. Notably, the top trader long/short ratio sits at 3.01, showing a strong long bias despite price weakness, a setup that often precedes forced liquidations if support fails.

The 2-hour Supertrend has just flipped bearish below $3.4352. Price is currently hovering near this level, and a clean break below could confirm a downside continuation. The DMI indicator also reinforces this signal, with ADX rising while +DI weakens, suggesting trend strength but no buyer dominance. Ichimoku structures show XRP breaking below the Tenkan-Sen and approaching Kijun support near $3.37 on the 4-hour timeframe. The bearish tilt will solidify further if price sustains below the EMA cluster, which is currently compressing around $3.46–$3.37.

On the downside, the green support blocks from previous breakouts are clustered between $3.00 and $3.10. A breakdown through $3.35 could accelerate a move toward this demand zone. If XRP price today loses the $3.43–$3.45 zone decisively, the immediate next target lies at $3.33, followed by $3.10. A break below this level would expose the $2.98–$3.00 demand cluster supported by the 100 EMA on the 4-hour chart. On the flip side, if bulls reclaim $3.50 with strength, a retest of $3.60 could unfold quickly. But to resume the broader uptrend, XRP must close above $3.66 with high volume, a scenario not currently supported by momentum or funding data.

Given the divergence in volume versus positioning, traders should prepare for volatility and closely monitor whether price can hold above $3.43. If not, deeper retracements could materialize. The current price of XRP is $3.45, with resistance levels at $3.58 and $3.66, and support levels at $3.35 and $3.10. The RSI on the 1-hour chart is at 38.94, indicating bearish divergence, while the MACD shows a weakening bullish crossover. Bollinger Bands on the 4-hour chart are tightening, and the price is below the 20 EMA and near the 50 EMA. The Supertrend on the 2-hour chart has flipped bearish at $3.4352, and the DMI indicator shows ADX rising while buyers are losing strength. Volume Profile resistance is at $3.58–$3.66, with open interest at $10.63B and volume up by 15.48%. The top trader ratio is 3.01, indicating a long-heavy position with a risk of liquidation.