XRP Price Drops to $2.73 as Ripple Tests Critical Support Amid Market Correction

XRP Price Drops to $2.73 as Ripple Tests Critical Support Amid Market Correction - Blockchain.News

Quick Take

• XRP currently trading at $2.73 (-3.63% in 24h) • XRP RSI at 38.92 suggests oversold conditions with potential bounce opportunity • Broader market correction drives XRP price below psychological $3 support level

What's Driving Ripple Price Today?

The XRP price has declined significantly over the past week, falling from above $3 to current levels of $2.73 as part of a broader cryptocurrency market correction. On August 29th, XRP dropped below the critical $3 threshold, declining 5.35% to approximately $2.82 amid a market-wide selloff that affected 95 of the top 100 cryptocurrencies.

Despite this recent weakness, Ripple has managed to hold above key technical support levels. Earlier in the week, XRP consolidated near $2.92, maintaining crucial support between $2.86 and $2.88. This consolidation formed a symmetrical triangle pattern with resistance around $3.05 to $3.12, suggesting indecision among traders.

The market sentiment had been more optimistic following dovish comments from Fed Chair Jerome Powell on August 25th, when the XRP price approached $3.10. Analysts at that time were eyeing ambitious targets between $5 and $8 if Ripple could break through current resistance levels. However, the subsequent market correction has dampened this near-term bullish outlook.

XRP Technical Analysis: Oversold Signals Emerge

The current Ripple technical analysis reveals oversold conditions that could present opportunities for contrarian traders. XRP's RSI reading of 38.92 sits in neutral territory but is approaching oversold levels below 30, suggesting selling pressure may be exhausting.

Ripple's moving averages paint a mixed picture for the medium-term outlook. While XRP trades below its 7-day SMA ($2.87), 20-day SMA ($2.97), and 50-day SMA ($3.09), it remains well above the 200-day SMA at $2.48, indicating the longer-term uptrend remains intact.

The MACD indicator shows bearish momentum with a reading of -0.0668, while the MACD histogram at -0.0310 confirms continued downward pressure. However, XRP's Stochastic oscillator readings (%K: 7.71, %D: 8.93) suggest the cryptocurrency is deeply oversold and may be due for a relief bounce.

Ripple's Bollinger Bands analysis reveals XRP trading near the lower band at $2.71, with a %B position of 0.0537 indicating proximity to oversold territory. The daily ATR of $0.16 shows moderate volatility, typical for current market conditions.

Ripple Price Levels: Key Support and Resistance

Based on Binance spot market data, several critical levels are shaping XRP's near-term price action. The immediate support for XRP sits at $2.70, which aligns closely with both the Bollinger Band lower boundary and recent swing lows. This Ripple support level has proven resilient, but a break below could target the stronger support zone at $2.70.

On the upside, XRP resistance appears at $3.35 for the immediate term, representing a significant hurdle that coincides with previous support-turned-resistance. Should Ripple reclaim this level, the next major XRP resistance zone lies at $3.66, near the 52-week high of $3.55.

The pivot point analysis suggests $2.76 as a crucial level for intraday trading, with the current XRP price of $2.73 sitting just below this threshold. A reclaim of the pivot could signal short-term bullish momentum for the XRP/USDT trading pair.

Should You Buy XRP Now? Risk-Reward Analysis

For swing traders, the current XRP price presents an interesting risk-reward setup. The proximity to key support levels around $2.70, combined with oversold technical indicators, suggests potential for a bounce. Conservative traders might wait for a clear break above $2.87 (7-day SMA) before establishing long positions.

Day traders should focus on the $2.70-$2.87 range, using the Ripple support levels as stop-loss placement while targeting the $3.00 psychological resistance. The 24-hour trading range of $2.70-$2.84 provides clear boundaries for short-term strategies.

Long-term investors may view current levels as accumulation opportunities, particularly given XRP's position well above the 200-day moving average at $2.48. However, risk management remains crucial, with stops below $2.48 protecting against a more significant trend reversal.

The daily volume of $272 million on Binance spot market indicates healthy liquidity for position management across all timeframes.

Conclusion

XRP price action over the next 24-48 hours will likely depend on broader market sentiment and the cryptocurrency's ability to hold the critical $2.70 support level. While recent selling pressure has pushed Ripple into oversold territory, the technical setup suggests potential for a relief rally if support holds. Traders should monitor the XRP/USDT pair closely for either a bounce from current levels or a break below support that could target deeper retracements toward the 200-day moving average.

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