Is XRP Facing a Deeper Correction After Recent Breakdown?
XRP struggles to hold above the recently broken bullish pattern, suggesting the potential for a deeper correction ahead.
FUNDAMENTAL OVERVIEW:
XRP struggles to maintain support near a crucial technical level.
After breaking above a falling wedge pattern—formed by connecting multiple highs and lows with converging trendlines since mid-July—XRP initially showed signs of strength last Thursday. Over the following three sessions, the token retested and was temporarily held above the upper boundary of the wedge, suggesting potential for a sustained breakout. However, bearish momentum resurfaced on Tuesday, leading to a nearly 5% correction that pushed XRP back below this key support level.
As of Wednesday, XRP trades around $2.88, showing signs of consolidation after the recent pullback. If selling pressure persists, the next downside target could emerge near the daily support level of $2.72. On the other hand, a decisive rebound above the broken trendline could reignite bullish sentiment, with potential for an upward move toward the next daily resistance zone around $3.40.
XRP TECHNICAL ANALYSIS CHART:
Technical Overview:
XRP is trading within a down channel.
XRP is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Selling Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 2.954
Immediate support level: 2.813
HOW TO TRADE XRP
On the higher timeframe, XRP surged sharply but faced repeated rejections, leading to a gradual decline. Although it found support multiple times, each rebound met selling pressure. Recently, XRP broke below a key support zone and is now pulling back toward resistance. A rejection at this level could trigger another downside move.
