XRP News Today: XRP Price Downtrend Deepens as Key Support Levels Break and On-Chain Metrics Deteriorate

XRP’s ongoing bearish trend has sparked concerns among traders and analysts, with several technical and on-chain indicators pointing to further downward pressure. The token, which has already fallen 23% from its all-time high of $3.66, appears to be consolidating within a bearish descending triangle pattern on the daily chart. According to data from Cointelegraph Markets Pro and TradingView, XRP broke below the key support level of $2.95 recently, reinforcing the possibility of a move toward $2.40—a target that would represent an 18% decline from the current price [1].

This bearish chart formation is reinforced by deteriorating on-chain metrics. The XRP Ledger has seen a sharp decline in daily active addresses, dropping from over 600,000 in early March to just 33,000 as of late August. This significant contraction in user engagement, as reported by Glassnode, suggests reduced interest in the network and could signal a potential slowdown in price momentum [1].

Further compounding the bearish outlook is the negative cumulative volume delta (CVD) for the XRP/USD pair over the past 90 days, as observed by CryptoQuant. The CVD has remained in negative territory, indicating sustained selling pressure and a waning appetite among investors. This is particularly concerning given that over 91% of the XRP supply is still in profit, increasing the likelihood of continued profit-taking and further price deterioration [1].

The XRP/BTC pair has also shown signs of bearish divergence, with the relative strength index (RSI) forming lower lows despite the pair establishing higher lows on the daily chart between July and August. This kind of divergence typically signals a weakening trend and may prompt traders to exit long positions, further amplifying the bearish momentum [1].

To reverse the trend, XRP must reclaim the critical $3 support level. Historical data from mid-July and early August indicates that regaining this level has previously led to notable price recoveries of 25% and 15%, respectively. However, failure to hold this level could open the door to a deeper correction toward $2.24 [1].

The ongoing sell-off could also be exacerbated if the XRP/BTC pair falls below the 0.0000245 to 0.0000250 BTC support zone, which coincides with the 200-day simple moving average. A break below this level may intensify the bearish sentiment and encourage further downside [1].

With declining transaction volume—down 51% from June’s 2.5 million transactions—XRP’s network activity remains weak, further eroding confidence in its short-term prospects [1]. The confluence of these factors suggests that XRP remains vulnerable to extended bearish pressure 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)