XRP News Today: XRP Trapped in Bear Flag Pattern Near $3.08 Amid Fading On-Chain Activity

XRP is currently in a bear flag pattern, a technical formation that typically signals a continuation of a downward trend unless strong bullish momentum invalidates the structure [1]. Analysts have noted that for XRP to break free from this pattern, it must close decisively above the $3.30 resistance level. As of the latest report, XRP is trading at around $3.08, with price action showing signs of tight consolidation between $3.00 and $3.10. The formation suggests that the market is in a critical phase, where buyers and sellers are competing for control around key technical levels [1].

The bear flag pattern is characterized by a sharp price drop followed by a consolidation phase within parallel trendlines. In XRP’s case, this pattern emerged after a recent high of $3.66 in mid-July, followed by a retracement and a narrow ascending channel. The current setup implies that a breakout is imminent, but the direction of the move depends on whether the $3.30 level can be reclaimed. A clean break above this level would invalidate the bearish structure and potentially drive the price toward the $3.42 to $3.65 resistance range [1].

Technical indicators provide a mixed outlook. The Relative Strength Index (RSI) is hovering near 60, indicating neutral to slightly bullish momentum, while the Moving Average Convergence Divergence (MACD) remains slightly positive but showing signs of weakening. This suggests that although there is some buying pressure, it may not be sufficient to drive a breakout unless trading volume increases [1].

On-chain activity for XRP has also shown signs of cooling off. Daily payment volume on the XRP Ledger has dropped below $1 billion, a significant decline from previous weeks when it reached multi-billion-dollar levels. This reduction is seen as a red flag by traders, indicating that both institutional and retail activity are waning [3]. Transaction volume and price stagnation are being interpreted as classic signs of market exhaustion, with the price currently trading below its recent high of $3.70 [3].

The broader altcoin market is also experiencing a slowdown, with interest in alternative cryptocurrencies like XRP diminishing. While projects such as Ethereum and Solana continue to see inflows, XRP has fallen out of the "billionaire club" of high-performing crypto assets. This further signals the potential end of its recent bullish phase unless there is a significant shift in market dynamics [3].

Despite the cautious sentiment, a breakout to the upside remains on the table. A confirmed close above $3.30 would not only invalidate the bear flag pattern but also attract renewed buying interest from traders and institutions. Analysts remain divided, with some expressing optimism if the pattern breaks higher, while others maintain a bearish outlook based on the current on-chain data and market conditions [1].

XRP’s price action is unfolding against a backdrop of broader macroeconomic uncertainty. Regulatory clarity following Ripple’s partial victory against the SEC has helped restore some investor confidence, but the market remains in a wait-and-see mode ahead of key U.S. policy updates and the upcoming Federal Reserve decision. These developments could influence risk appetite across the crypto market, including XRP’s trajectory [1].

Unless there is a surge in volume and liquidity, or a renewed interest from high-volume traders, the recent bullish momentum for XRP may not hold. The market is closely watching for any signs of renewed demand or a reversal in price action that could signal a shift in the asset’s direction [1].