XRP Price Struggles to Maintain $3; Is a Downturn on the Horizon?

Despite a broader market rally, XRP is having difficulty holding onto key price levels, leading to concerns about a possible decline. This article examines the current state of XRP, market sentiments, and potential price movements.

Key Takeaways

XRP is currently trading at approximately $2.97, having decreased by 0.62% over the last 24 hours.
The cryptocurrency briefly surpassed $3 but faced selling pressure shortly after.
Social sentiment for XRP has turned negative, indicating a potential turning point.
The main support level to watch is the 200-day moving average, currently around $2.58.

XRP price chart from crypto.news with technical indicators including 200-day moving average and MACD.

Current XRP Price Trends

As of now, XRP is trading at around $2.97, which is a minor decline of 0.62% in the last day based on data from crypto.news. Although the cryptocurrency has seen a 4% increase over the past week, its recent performance has been relatively stagnant.

XRP had previously enjoyed some upward movement alongside major cryptocurrencies like Bitcoin and Ethereum, even briefly surpassing the $3 mark. However, it was quickly rejected at this resistance level, leading to renewed selling pressure that has brought the price back down, despite a generally bullish sentiment across the crypto market.

Recent institutional interest, including VivoPower’s planned $19 million XRP treasury investment and seven pending ETF applications, fueled some initial optimism. However, these developments weren't sufficient to create lasting upward momentum.

Can XRP Find Support and Move Higher?

At present, social sentiment around XRP is leaning bearish. Data from Santiment, dated October 7, indicates that the token is experiencing its highest level of fear, uncertainty, and doubt (FUD) since significant market events six months ago. The analysis shows that over the past couple of days, there have been more negative comments from retail investors than positive ones, matching the downward trend in price.

Historically, such excessive pessimism from retail traders can signal a potential market reversal. Therefore, XRP’s price trajectory will largely depend on how it reacts to key technical levels in the near future.

Currently, momentum indicators are yielding mixed signals. The MACD (Moving Average Convergence Divergence) is slightly positive, with the MACD line positioned just above the signal line, indicating a modest build-up of bullish momentum, though it remains weak.

XRP price chart from crypto.news with technical indicators including 200-day moving average and MACD. XRP price chart | Source: crypto.news

The most crucial support line to monitor is the 200-day moving average, which is currently near $2.58. Historically, this level has served as a solid base for XRP during market fluctuations. If XRP can maintain its position above this support level and buyer interest remains firm, a renewed upward momentum may emerge.

To confirm a bullish breakout, XRP will need to close decisively above the $3.15 resistance level, which had previously been a zone of consolidation. Successfully surpassing this barrier with strong trading volume could ignite buying interest, propelling XRP towards $3.66 and potentially higher targets, contingent on overall crypto market conditions.

Conversely, if XRP fails to uphold support around the 200-day moving average and the $2.70 to $2.90 range, it may face a period of consolidation or additional downside risk. A drop below crucial support levels could lead to further losses, pushing the price down toward $2.50 or lower.