XRP News Today: XRP tests $2.90 support amid bearish momentum and key technical breakdown signals

XRP faces a potential correction as the $2.90 support level is being tested amid growing bearish momentum. The token has retreated from a mid-July high of $3.50, marking a significant shift in market sentiment. This support level is crucial for maintaining short-term bullish control, but recent price action—including three consecutive lower closes and a bearish engulfing candle—suggests that sellers are gaining the upper hand [1]. Analysts highlight that a breakdown below $2.90 could push XRP toward the $2.55–$2.40 range, a former resistance zone that may now offer a stabilizing foundation [1].

Technical indicators corroborate the bearish narrative. The Relative Strength Index (RSI) has fallen to 51.54, down from overbought levels above 70, indicating cooling momentum. Additionally, the Moving Average Convergence Divergence (MACD) has crossed below its signal line, with a histogram reading of -0.0690, confirming increasing downward pressure [1]. These signals suggest that the market is tilting toward a bearish outlook. According to COINOTAG analyst Ali, the $2.55–$2.40 range is a potential support zone that could provide a foothold for XRP if the $2.90 level fails [1]. If this zone holds, a rebound toward $3.30–$3.50 remains possible, but prolonged selling could see prices fall further to $1.90.

Active trading volume remains at 21.12 million, indicating strong participation but also reflecting the uncertainty among traders [1]. For XRP to reclaim bullish momentum, the RSI would need to rise above 55, paired with increased buying volume. Without such a combination, bearish pressure is likely to persist, making the upcoming price action critical in determining the asset’s near-term direction [1].

XRP’s recent price path—from a low of $2.20 to a peak above $3.60 in mid-July—has now entered a correction phase. The current price is just above the key $3.00 psychological support level, a sign that traders are closely watching the market for signs of stabilization or further decline [1]. The asset’s trajectory will depend heavily on whether the $2.90 and $2.55–$2.40 support levels can hold against continued selling pressure.

As the market tests these levels, investors are advised to monitor both price and volume dynamics closely. A decisive break below $2.90 could accelerate the move toward $2.55–$2.40, while a rebound from these levels may trigger a temporary recovery. For now, the bearish trend remains intact, and without a shift in momentum, further downside remains a risk [1].

Source: [1] XRP Faces Potential Correction as $2.90 Support Is Tested Amid Bearish Momentum (https://en.coinotag.com/xrp-faces-potential-correction-as-2-90-support-is-tested-amid-bearish-momentum/)