XRP Under Siege: Critical Support Levels Teeter as Selling Pressure Mounts
XRP bulls are scrambling as key technical foundations show alarming cracks. The digital asset faces its most significant test in weeks amid broadening market uncertainty.
The Breakdown Mechanics
Support levels that held firm through previous volatility now threaten to capitulate under sustained selling pressure. Market momentum indicators flash warning signals as trading volume patterns suggest institutional hesitation.
Traders face brutal margin calls while long-term holders watch portfolio values evaporate—another reminder that in crypto, 'support' is just resistance that hasn't been tested yet.
At the beginning of the week, XRP experienced significant selling pressure after losing the $3.0 support level. This downtrend is marked by the short-term 50 EMA crossing below the long-term 200 EMA, a pattern known as the death cross. Concurrently, large wallet transfers to exchanges have increased, adding to the selling pressure. The crucial resistance level on the daily chart is around $2.95, though XRP has briefly tested this area without stability. The focus now shifts to the $2.81 support, which, if breached, could trigger a correction down to $2.72 and potentially further to $2.00.
ContentsThe Critical Juncture on XRP ChartXRP Influx to Exchanges Surges AgainThe Critical Juncture on XRP Chart
The XRP chart has signaled the death cross formation for the third time in August. In past instances, this formation led to price declines from $3.12 to $2.93 on August 15 and from $3.03 to $2.93 on August 18. This weakens the short-term trend and reduces market risk appetite, reflecting in the technical setup.
On the daily timeframe, the $2.95 level remains a challenging Fibonacci barrier, which XRP has not yet surpassed consistently. Each attempt to break this resistance has ended with increased seller activity, compressing the price within a narrowing band.
Below $2.81 is a critical threshold. A drop beneath this line could elevate selling pressure, pushing XRP down to $2.72. This level represents the last significant defense before a potential deeper retracement towards the $2.00 psychological level.
XRP Influx to Exchanges Surges Again
According to data from CryptoQuant, there has been an uptick in XRP coin transfers to exchanges by large wallet holders for profit-taking. Around August 13, whale transfers to Binance peaked with approximately 29,805 XRP, with the price falling from $3.27 to $3.08. By August 21, exchange inflows had increased significantly to 6,293 XRP, a NEAR sevenfold rise since the lowest point of 900 coins.
Historically, similar spikes in inflows have predated price declines. For instance, after a jump on July 30, the price dropped from $3.09 to $2.76, and post the August 3 surge, it fell from $3.07 to $2.96. These exchange inflows often signal shifts in short-term trend and could do so again.
Should the current exchange inflows surpass the August 13 peak, it WOULD record the first higher high in the ongoing downtrend. This situation could escalate aggressive selling and exert additional short-term pressure on the price. To pivot the price chart favorably for buyers, exchange inflows must diminish while a significant break above $2.95 occurs.
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