XRP News Today: XRP Faces 22% Correction as Key $2.65 Support Tested Amid Bearish Momentum Signals

XRP is currently navigating a 22% correction following its recent peak near $3.70, with bearish momentum signals and critical support levels attracting close attention from traders and analysts. The digital asset has shown signs of short-term exhaustion, including a TD Sequential 9-count and increased selling volume, suggesting that the rally has temporarily lost steam [1].

Technical indicators reinforce the bearish narrative. The Relative Strength Index (RSI) has declined to 45.16, moving away from the overbought levels above 70 and signaling growing bearish pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) has turned negative, with the line now sitting below the signal line and a downward histogram trend, further confirming weakening momentum [1]. These signals collectively suggest that XRP is in a consolidation or retracement phase.

A key focal point is the $2.65 support level. Analysts, including COINOTAG, emphasize that maintaining this level is critical to preserving the broader bullish trend [1]. Should this support break, XRP could face additional downward pressure, potentially falling to the $2.30–$2.40 range or even as low as $1.93, depending on how much selling pressure continues. On the flip side, if $2.65 holds, it could provide a foundation for a potential recovery and further bullish movement.

Market structure also reveals that resistance has flipped to a barrier around $2.95–$3.00, an area that previously acted as support. The recent peak between $3.40 and $3.70 also showed strong rejection, further validating the current bearish sentiment [1]. Volume analysis confirms this, with daily trading volume reaching 46.06 million as selling activity intensifies during the pullback. This heightened volume suggests that the bearish trend has strong conviction and may persist until a new equilibrium is established.

Despite the short-term correction, XRP’s broader trend remains bullish. However, consolidation around key support levels is necessary to stabilize price action before any meaningful upward move can occur. Traders will be watching the $2.75, $2.50, and $2.30 levels closely, as these will determine whether the correction leads to a deeper decline or sets up a new rally [1].

Market participants are advised to remain cautious, as the current phase reflects a period of digestion after an overstretched rally. The next few days will be crucial in determining whether buying interest can re-emerge to challenge the bearish bias or if further downward movement is likely.

[1] https://en.coinotag.com/xrp-may-face-further-pullback-as-key-support-nears-2-65-amid-weakening-momentum-signals/