XRP News Today: XRP Faces Bearish Signals as Key Resistance Fails and Stochastic RSI Hits Overbought Levels

Analyst StephisCrypto has recently drawn attention to a potential sell signal in XRP’s weekly chart on Bitstamp, noting a pattern that historically has coincided with market pullbacks. The chart shows XRP rising above the $3.50 level in mid-2025 before a retracement, with red arrows indicating prior peaks that were followed by price corrections. This repeated pattern has raised concerns among traders who rely on technical indicators for timing entries and exits [1]. The recent upward move also followed a period of sideways consolidation, marked by a large green candlestick that pushed the token past $3 [1].

In the lower panel of the chart, the stochastic RSI readings sit at approximately 77.65 and 85.77, levels that the analyst notes have historically preceded price corrections. While the stochastic RSI is a common indicator of overbought conditions, the analyst cautions that it should not be viewed as definitive evidence of a reversal. Broader market context and price structure must also be considered [1]. The attached tweet from StephisCrypto underscores the caution, asking whether traders should ignore the sell signal [1].

Community responses on platform X reflect a range of perspectives. One user, X Finance Bull, argued that while momentum appears stretched, structural support and resistance levels should take precedence in long-term strategies. Another, MJS, emphasized that investors with a longer-term view—such as those betting on XRP’s role in the future financial system—should not be swayed by short-term technical signals. MJS also noted that not all investors will withstand market volatility, highlighting the psychological challenges of trading in digital assets [1].

Meanwhile, Ali Martinez, a well-known market analyst, highlighted a critical sell signal on the three-day TD Sequential chart on August 3, as XRP pulled back below the $3 level following a brief rally above $3.60. This signal, often used to predict trend exhaustion, emerged as XRP approached a key resistance zone between $3.60 and $4. Following the signal, prices have steadily declined, raising questions about the sustainability of the recent bullish momentum [1]. On-chain data indicates that XRP has found a temporary buffer around $2.80, with $2.40 identified as a critical support level. A breach below this threshold could bring the token down to the $2.00 region [1].

At press time, XRP was trading at $2.92, rebounding over 5% in the last 24 hours. However, the weekly chart shows a nearly 10% decline, reinforcing the bearish sentiment in the broader timeframe. Technical indicators present a mixed picture. The 50-day Simple Moving Average (SMA) is at $2.65, suggesting the price is above the short-term trend, while the 200-day SMA at $1.875269 reflects a long-term upward trend [1]. Other analysts suggest that a bullish reversal could occur if on-chain volume remains stable and key support levels hold [2]. However, the recent sell signal and broader bearish trend have prompted some to advise caution for short-term traders [2].

The broader crypto market’s weakness has also weighed on XRP, now officially in a local bear market after dropping 22% from its year-to-date high. Some analysts are discussing the potential for a 20% rebound if XRP stabilizes and reclaims the $3 level. Yet with $3.60 resistance failing repeatedly, the path to a significant recovery appears more challenging [4].

The market remains divided. Some see XRP potentially regaining bullish momentum, while others anticipate continued declines. With key technical levels under test and on-chain data indicating bearish exhaustion, the next few weeks may be decisive in determining whether XRP can stabilize or face further downward pressure [5].