XRP Price Faces Critical Support Test at $2.84 as Market Correction Continues

XRP Price Faces Critical Support Test at $2.84 as Market Correction Continues - Blockchain.News

Quick Take

• XRP currently trading at $2.84 (+0.32% in 24h) • XRP RSI at 42.96 signals neutral territory with bearish bias • Recent market correction pushed XRP price below $3 despite positive partnership news

What's Driving Ripple Price Today?

The XRP price faced significant pressure this week as it dropped below the psychologically important $3 level during Thursday's broader market correction. This decline of 5.35% to approximately $2.82 affected nearly all major cryptocurrencies, with 95 of the top 100 digital assets experiencing losses.

Despite positive developments for Ripple's ecosystem, including the partnership with SBI Holdings to distribute the RLUSD stablecoin in Japan and joining TRM Labs' Beacon Network for enhanced security, these fundamental improvements have failed to provide immediate price support. The disconnect between positive news and XRP price action highlights how broader market sentiment currently dominates individual token fundamentals.

The timing of these partnerships, while strategically important for Ripple's long-term adoption, coincided with a market-wide risk-off sentiment that overshadowed their potential positive impact on XRP's valuation.

XRP Technical Analysis: Bearish Signals Emerge

Ripple technical analysis reveals several concerning indicators for short-term price action. XRP's RSI at 42.96 sits in neutral territory but shows a downward trajectory from overbought levels, suggesting continued selling pressure may emerge.

The MACD indicator presents a clearly bearish picture for XRP, with the main line at -0.0512 and the signal line at -0.0271. The negative histogram of -0.0242 confirms that bearish momentum is accelerating, indicating that sellers remain in control of XRP price direction.

Ripple's position within the Bollinger Bands tells a compelling story. With XRP trading near the lower band at $2.74 and showing a %B position of 0.1857, the token is approaching oversold territory. This positioning suggests that while immediate downside risk exists, XRP may be nearing a potential bounce zone.

The moving average structure further supports the bearish near-term outlook. XRP price currently sits below all short-term moving averages, including the 7-day SMA at $2.90, 20-day SMA at $3.00, and 50-day SMA at $3.10, creating multiple resistance levels above current prices.

Ripple Price Levels: Key Support and Resistance

Critical Ripple support levels are converging around current prices, making the next few trading sessions pivotal for XRP's direction. The immediate support at $2.76 aligns closely with the current XRP price of $2.84, providing little cushion for further declines.

Below this level, XRP faces strong support at $2.72, which represents a crucial psychological and technical level. A break below this zone could trigger additional selling toward the Bollinger Band lower boundary at $2.74, creating a potential support cluster.

On the upside, XRP resistance appears formidable. The immediate resistance at $3.35 coincides with recent highs, while the stronger resistance at $3.66 represents a significant technical barrier. The concentration of moving averages between $2.90 and $3.10 creates a resistance zone that XRP price must reclaim to signal a bullish reversal.

Based on Binance spot market data, XRP's trading range of $2.87/$2.77 over the past 24 hours illustrates the narrow consolidation pattern, suggesting a potential breakout in either direction is approaching.

Should You Buy XRP Now? Risk-Reward Analysis

For aggressive traders, the current XRP price setup offers a potential contrarian opportunity, but with strict risk management requirements. The proximity to key support levels at $2.76 and $2.72 provides clearly defined stop-loss levels, while the oversold conditions on the Bollinger Bands suggest a technical bounce could materialize.

Conservative investors should wait for confirmation of support holding and evidence of buying interest returning. A daily close above $2.90 would signal that XRP has reclaimed the 7-day moving average and could indicate the beginning of a relief rally toward the $3.00-$3.10 resistance zone.

Swing traders might consider a scaled approach, with initial positions near current levels and additional buying if XRP price holds above $2.76. The risk-reward ratio favors buyers at these levels, with stops below $2.70 and initial targets at $3.00, representing approximately 5.6% upside potential against 4.9% downside risk.

The broader market context remains crucial for XRP's performance. Any continuation of the crypto market correction could override technical support levels and push XRP price toward the strong support at $2.72 or lower.

Conclusion

XRP price sits at a critical juncture as it tests major support levels following this week's market correction. While Ripple technical analysis shows bearish momentum in the short term, the oversold conditions and proximity to key support create potential for a technical bounce. Traders should monitor the $2.76 support level closely, as a break below could accelerate selling toward $2.72, while a hold above this level might trigger relief buying toward $3.00 resistance. The next 24-48 hours will likely determine whether XRP can stabilize or faces further downside pressure.

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