XRP News Today: XRP Falls Below Key Support Amid Broader Crypto Weakness and Oversold RSI

XRP has moved below key support levels, crossing beneath its 50-day simple moving average (SMA) for three consecutive sessions. The token recently closed as low as $2.78, marking a significant pullback from its August 8 high of $3.38. The sustained bearish momentum has pushed the Relative Strength Index (RSI) below the 30 threshold on the hourly chart, a commonly referenced level that signals oversold conditions and hints at a potential short-term bounce [2]. However, traders remain cautious, as a reversal is not confirmed until follow-through buying is evident and key support levels hold.

The recent breakdown has placed XRP in a technical confluence of Fibonacci retracement levels, raising concerns about a deeper correction. Analysts are watching the $2.95 support zone closely, as a failure to hold above this level could lead to a retest of $2.78. A further breakdown may expose price targets at $2.13 and $2.02, particularly if bearish sentiment intensifies [3]. On the other hand, a retest of $2.85–$2.90 with a strong close above could signal renewed bullish momentum, especially if on-chain activity, such as the recent movement of 100 million XRP from Bitstamp, indicates accumulation by large holders [6].

The move lower is occurring amid broader market weakness, with the cryptocurrency sector experiencing over $312 million in liquidations over the past 24 hours, according to CoinGlass data [1]. The broader risk-off environment has been exacerbated by anticipation of the upcoming Jackson Hole symposium, where Federal Reserve Chair Jerome Powell is expected to address monetary policy. Market participants are closely watching the speech for clues on future interest rate direction, as it could influence the risk appetite of crypto investors.

In parallel, Ripple has taken steps to strengthen its global presence by signing a memorandum of understanding with SBI VC Trade, a subsidiary of Japan's SBI Holdings. The agreement aims to facilitate the distribution of Ripple USD (RLUSD), a stablecoin being developed on both the XRP Ledger and Ethereum blockchain [1]. This development highlights Ripple’s strategic focus on international expansion, particularly in response to regulatory and market uncertainties.

On the technical front, the narrowing of XRP’s Bollinger Bands suggests a period of consolidation, with a potential breakout looming [8]. A double bull flag pattern forming around $2.90 has drawn attention from analysts, with optimistic projections pointing to price targets as high as $5.38 and even $10, depending on the strength of the reversal [5]. However, these projections are based solely on technical analysis and remain speculative unless supported by further fundamental or on-chain developments.

XRP’s market psychology is currently in a delicate balance. While the RSI has flashed an oversold signal, the inability to break above key resistance levels underscores a lack of conviction among buyers. This divergence is compounded by the token’s sensitivity to broader crypto trends, as Bitcoin and Ethereum also struggle for direction. If the larger crypto market fails to find a bottom, XRP may continue to face headwinds, despite some on-chain activity suggesting accumulation.

As the market approaches critical technical levels, the interplay between regulatory developments and technical signals will be key in determining XRP’s near-term trajectory. With key support and resistance levels in focus, the coming weeks could determine whether the token continues its bearish correction or initiates a bullish reversal. Traders are advised to remain cautious and employ risk management strategies as the asset remains in a volatile phase.

Source:

[1] https://cryptofrontnews.com/xrp-drops-below-key-support-as-rsi-flashes-ove/

[2] https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-ethereum-xrp-supply-in-profit-decline-ahead-of-fed-powells-speech-202508221158

[3] https://blockchain.news/news/20250823-price-prediction-xrp-280-retest-before-320-breakout-in

[5] https://www.binance.com/square/post/28655188047417

[6] https://thetradable.com/crypto/xrp-ripple-price-prediction-could-hit-records-as-bollinger-bands-turn-bullish-3

[8] https://blockchain.news/flashnews/xrp-etf-filings-updated-after-sec-feedback-as-october-deadline-nears-what-traders-need-to-know