XRP Breaks Below $3, Eyes $2.6 Support Amid Bearish Momentum
XRP has fallen below the key $3 level, extending a 13.6% drop since late July as intensified selling pressure follows Bitcoin’s recent 5% decline. Technical indicators on the 12-hour and daily charts confirm bearish momentum: the Accumulation/Distribution line is declining, the Awesome Oscillator reads negative, and the Directional Movement Index shows a strong downtrend with –DI above +DI and ADX above 20. The next critical support sits at $2.6, aligning with a fair value gap and previous range highs, making it a key level for traders. On-chain data from Glassnode show exchange inflows peaked in mid-July and remain net positive, while percent supply in profit exceeded 90% at the July 23 peak. However, XRP’s MVRV Z-Score stays below historical peaks, suggesting the token is not overvalued and retains long-term upside potential. Traders should monitor the $2.6 support for a potential entry and watch for shifts in on-chain metrics and technical indicators as signs of trend reversal.
Bearish
The short-term outlook for XRP is bearish due to multiple technical indicators confirming a strong downtrend and Bitcoin’s recent 5% sell-off intensifying selling pressure. Breaching the $3 level and negative momentum signals increase the probability of a further drop toward $2.6. Although the MVRV Z-Score below historical peaks suggests underlying value, it is unlikely to counter immediate bearish sentiment until the $2.6 support is firmly held. Traders should stay cautious and watch on-chain exchange inflows and momentum readings for any signs of a reversal.