The XRP price has been struggling to maintain its position above key levels, despite the overall strength of the cryptocurrency market. This has raised concerns among investors and analysts about a potential decline in the token’s value. As of the time of writing, the XRP price is around $2.97, having declined by 0.62% in the last 24 hours, according to data from crypto.news.
Market Overview and Institutional Demand
XRP had previously seen a surge in price alongside major assets like Bitcoin (BTC) and Ethereum (ETH), briefly rising above $3 before facing rejection at resistance. The selling pressure that followed caused the price of the Ripple token to decline, even as the overall cryptocurrency sentiment remains bullish. Institutional demand, led by VivoPower’s planned $19 million XRP Treasury and seven pending ETF filings, had sparked near-term optimism. However, this was not enough to trigger sustained upward pressure on the token’s price.
The social mood around XRP has become increasingly pessimistic, with Santiment data showing the token’s highest FUD (Fear, Uncertainty, and Doubt) value since major market events six months ago. There have been more bearish than bullish comments from retail traders in the last two to three days, coinciding with the price decline. Historically, such patterns have signaled potential trend reversals, as markets tend to move in the opposite direction of excessive pessimism by small traders.
Technical Analysis and Outlook
The XRP price outlook largely depends on how it behaves near key technical levels in the near term. Momentum indicators are mixed, with the MACD (Moving Average Convergence Divergence) slightly positive, suggesting moderate bullish momentum but with a weak signal. The key support line is the 200-day moving average, currently at $2.58, which has historically acted as a strong base for XRP during market fluctuations.
XRP price chart | Source: crypto.news
To confirm a bullish breakout, the price must close well above the $3.15 resistance level, which was a previous zone of consolidation and rejection. Crossing this hurdle on solid volume would likely generate buying interest that could push XRP toward $3.66 and potentially higher targets, depending on overall crypto market conditions. On the other hand, if XRP fails to maintain support around the 200-day moving average and the $2.70-$2.90 range, it could enter a period of consolidation or even additional downside risk.
A break below key support levels could trigger further losses and push the price towards $2.50 or below. Therefore, it is crucial for investors and traders to monitor the XRP price closely and adjust their strategies according to the changing market dynamics. For more information and the latest updates on XRP and the cryptocurrency market, visit https://crypto.news/xrp-price-fails-to-hold-3-despite-market-rally-is-more-downturn-ahead/.
