XRP News Today: XRP Price Downtrend Continues Amid Technical and On-Chain Bearish Signals

XRP’s price appears to be in a sustained bearish trend, with several on-chain and technical indicators reinforcing the possibility of further declines. A confirmed bearish descending triangle on the daily chart suggests a potential drop to $2.40 from the current level, representing an 18% fall [1]. This pattern, characterized by a flat support line and a descending upper trendline, has been broken below at $2.95, signaling a continuation of downward momentum [1].

The bearish sentiment is further reinforced by a growing divergence between the XRP/BTC price and the relative strength index (RSI). While the XRP/BTC pair formed higher lows between July 10 and August 18, the RSI declined significantly from overbought conditions above 75 to 43 over the same period [1]. This negative divergence typically indicates weakening momentum in an uptrend and may prompt traders to take profits, reducing buying pressure and increasing downward pressure.

Network activity has also shown signs of weakening, with a sharp decline in daily active addresses (DAAs) on the XRP Ledger. On-chain data reveals that DAAs have dropped from a high of 608,000 in March and 577,134 in June to approximately 33,000, indicating reduced user engagement and transaction volume [1]. Additionally, the number of transactions on the network has fallen by 51%, from 2.5 million in June to 1.25 million [1]. This decline in on-chain activity can be interpreted as a sign of waning demand and reduced confidence in XRP’s near-term prospects.

Further evidence of bearish pressure comes from the 90-day spot taker cumulative volume delta (CVD), which has remained negative since July 28 [1]. This metric indicates that selling pressure has dominated the order book, reflecting a shift in investor sentiment toward profit-taking and reduced buying interest. If the CVD remains negative, it could lead to a continuation of the downward trend, as seen in previous corrections.

XRP must now reclaim the $3 support level to avoid a deeper correction toward $2.24. Historical data shows that the price rebounded from this level in mid-July and early August before experiencing gains of 25% and 15%, respectively [1]. However, with over 91% of the XRP supply still in profit, continued profit-taking could further fuel the sell-off.

The convergence of these factors—technical breakdowns, divergences in price and sentiment indicators, declining network activity, and persistent selling pressure—suggests that the bearish momentum in XRP is far from over. Investors and traders should remain cautious, as the path of least resistance appears to be to the downside in the near term.

Source: [1] XRP’s price downtrend could continue: Here’s 4 reasons why (https://cointelegraph.com/news/xrp-s-price-downtrend-could-continue-here-s-4-reasons-why?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)