XRP has fallen below its vital support level of $3.40, and that has catalyzed the move to the downside and halted near the $2.50 area. The decline shows the speed of the change of market sentiment, particularly when it has been rejected at a key resistance area.
According to analyst Michael van de Poppe, such rejection is indicative of further losses over the short term.
At this point, he is observing two breakout areas for XRP where an entry can be potentially made, and this is when the asset breaks back into the 3.40 level or breaches into the 2.40 to 2.60 support region.
Technicals Point to More Pressure on XRP Price
On the daily chart, the token’s Relative Strength Index (RSI) sits at 53, suggesting neutral momentum but leaning toward the possibility of further declines.
The failure to maintain a price above 3.40 has shifted focus to the lower support levels, which have successfully attracted buying interest that could resurface.
Although the market is still volatile, traders are keeping a close watch on whether XRP can rebalance above $2.60 to avoid a further loss.
A retake at 3.40 would probably tip the sentiment back on the bulls’ side, but not before then; the technical picture is not so bullish.
Market Sentiment Turns Watchful
This is a typical correction after a big run in the market. XRP whales are taking profit, and this happens before CPI data is released every month. The market usually remains volatile in August, and this week is a typical case of it.
In the case of short-term traders, the coming days will be notable for whether XRP will achieve a mid-consolidation.
At the moment, XRP is balanced between decisive support and resistance levels, and traders watch the range of $2.4026 as a potential core of accumulation and $3.40 as a line that should be crossed to restart bullish activity.
