XRP Eyes $2.74 Support as Sentiment Weakens, May Drop to $2.40
XRP faces a critical test of its $2.74 support level after daily closes neared the swing low, signaling short-term bearish momentum. Technical indicators—including declining volume, falling on-balance volume (OBV) and an RSI below 50—point to increased selling pressure. Open interest has slid even as funding rates remain positive, showing traders are reducing positions amid muted conviction.
Historical seasonality adds to caution: September rarely delivers gains above 15% for XRP, unlike stronger months such as January and July. With Bitcoin also under pressure, XRP bulls may struggle to find the buying momentum needed for a rebound. A sustained rally now appears unlikely without a Bitcoin-led uptrend or a sudden spike in buying interest.
Traders should monitor daily closes around $2.74, watch volume and OBV for accumulation signals, and use Bitcoin’s price action as a macro filter. If $2.74 fails to hold, a drop toward $2.40 becomes the most probable near-term scenario. Conversely, recovery above key resistance near $3.50 may signal a reversal toward higher targets later in the year.
Bearish
The report’s technical analysis shows XRP’s key $2.74 support under threat, with volume, OBV and RSI all signaling distribution. Open interest decline amid positive funding indicates traders are unwinding positions despite a favorable derivative environment. Historical data reveals September is typically a weak month for XRP, and Bitcoin’s own vulnerability could further drag prices down. Similar past breakdowns of critical support levels led to swift declines, reinforcing a bearish near-term outlook. Without a Bitcoin-led rally or a sudden surge in buying pressure, XRP is likely to test $2.40. Long-term recovery may hinge on improved macro conditions and renewed crypto market strength in Q4.