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XRP’s price dropped following a sell signal from the TD Sequential indicator on the daily chart. The cryptocurrency is currently trading at $2.6433, marking a 3.08% decline. Analysts suggest that this signal could indicate a trend reversal, putting key support levels at risk.
Market analyst Ali has pointed out that the TD Sequential’s sell setup follows a nine-candle sequence, which often signals a slowdown or correction. Traders are now closely watching whether XRP can maintain its support levels or if further declines are ahead.
XRP Price Key Technical Levels and Market Structure
The price of XRP struggles to break through the $2.76 to $2.80 barriers where previous rejections occurred. The bulls may face difficulties if the price makes a comeback attempt near this resistance area.
The support levels for XRP stand at $2.60 together with stronger defensive positions located between $2.50 and $2.45. Experts believe the price likely will descend from $2.20 to $2.00 if it passes under these two key support areas.The price breaking below the rising wedge pattern confirms that the market outlook will turn bearish.
The 4-hour chart showed forming a rising wedge pattern which indicated future price downtrends. XRP has completed a breakout from its previous bearish pattern thus strengthening the bearish market outlook. The technical breakdown analysis indicates that prices could drop to minimum levels of $2.00 – $1.80 following this event.
More Investors at Risk of Being Priced Out
According to a recent report by Edoardo Farina, founder of Alpha Lions Academy, many investors face an ongoing challenge to stay invested in XRP tokens due to rising market values.
A few months back 3,000 XRP constituted a position among the top 10% of holders which cost investors $1,500. The current market surge in XRP has made it necessary for investors to acquire 2,500 XRP worth $6,500 to belong to the top 10% of holders.
Farina predicts that the continuous rise in XRP value threatens to create holding issues for 95% of existing investors. The long-term investor perspective would profit greatly when XRP reaches the anticipated high valuation levels.
Technical Indicators Data
Market indicators show RSI currently holds at 37.54 just before entering oversold conditions. A market price drop below 30 on the RSI metric signals potential overselling conditions which might lead to brief upward changes.
The Money Flow Index (MFI) shows 32.45 at present which indicates weak market buying activity. A price that falls below 25 – 20 points may demonstrate very strong selling pressure so the market could rebound for a brief period.
The open interest (OI) for XRP currently stands at $1.9 billion, with $1.8 billion in perpetual contracts and $4.1 million in futures contracts. Over the last 24 hours, the total OI has declined by 3.45%. This is primarily driven by a 3.46% drop in perpetual contracts, while futures contracts have seen a slight increase of 1.65%.
Open interest decreases indicate market participants close their positions and exit the market. Short-term traders are taking profits and decreasing their market exposure through perpetual contracts resulting in potential decreased market volatility in the upcoming period.