XRP Price Falls 4% as Ripple Tests Critical Support at $2.88

Quick Take

• XRP currently trading at $2.88 (-4.12% in 24h)
• XRP RSI at 44.16 signals neutral territory with potential oversold bounce ahead
• Ripple’s collaboration with SBI Holdings for RLUSD stablecoin distribution supports long-term adoption

What’s Driving Ripple Price Today?

XRP price action reflects a natural pullback following last week’s impressive 9% surge that pushed the token near $3.10 resistance. The recent decline comes despite fundamentally positive developments for Ripple’s ecosystem.

The most significant catalyst was Ripple’s strategic partnership with Japanese financial giant SBI Holdings announced on August 23. This collaboration will distribute Ripple’s RLUSD stablecoin through SBI VC Trade, expanding stablecoin options in Japan’s regulated market. While this represents a major adoption milestone, the immediate market impact has been overshadowed by profit-taking after XRP’s recent rally.

Additionally, Ripple joined TRM Labs’ Beacon Network as a founding member, creating the first real-time crypto crime response network. This partnership enhances Ripple’s compliance credentials and could facilitate further institutional adoption, though the security-focused announcement hasn’t provided immediate price support.

The August 23 surge that preceded this week’s decline was primarily driven by Federal Reserve Chair Jerome Powell’s dovish Jackson Hole commentary, which reinforced September rate cut expectations and lifted broader crypto market sentiment.

XRP Technical Analysis: Mixed Signals Emerge

Ripple technical analysis reveals a consolidation phase with XRP price testing critical support levels. The token’s RSI at 44.16 sits in neutral territory, suggesting neither oversold nor overbought conditions, leaving room for movement in either direction.

XRP’s MACD histogram shows bearish momentum at -0.0177, indicating selling pressure continues to outweigh buying interest. The MACD line at -0.0316 remains below its signal line at -0.0139, confirming the short-term bearish bias.

The Bollinger Bands provide crucial context for current price action. With XRP’s %B position at 0.1720, the token trades near the lower band at $2.80, suggesting potential oversold conditions. This positioning often precedes bounce attempts, especially when combined with the current RSI reading.

Moving averages paint a complex picture. While XRP trades below shorter-term averages (SMA 7 at $2.97, SMA 20 at $3.04), it maintains a position well above the critical SMA 200 at $2.48, preserving the longer-term bullish structure.

Ripple Price Levels: Key Support and Resistance

Current XRP price action centers around the $2.92 pivot point, with immediate support at $2.78 providing the first line of defense. This level aligns closely with the Bollinger Band lower boundary, creating a confluence zone that could attract buyers.

Should XRP price break below immediate support, the next major level sits at $2.51, representing Ripple support levels that have held during previous corrections. This zone coincides with the rising 200-day moving average area, making it a critical level for maintaining the overall bullish trend.

On the upside, XRP resistance emerges at $3.35, the immediate barrier that needs to break for resumption of the recent rally. Beyond this level, the strong resistance zone at $3.66 represents the next major target, sitting near the 52-week high of $3.55.

The XRP/USDT pair’s daily ATR of $0.17 suggests normal volatility levels, providing traders with clear risk parameters for position sizing.

Should You Buy XRP Now? Risk-Reward Analysis

For swing traders, the current setup offers an attractive risk-reward scenario. Based on Binance spot market data, entering near current levels with stops below $2.78 provides a tight risk profile while targeting the $3.35 resistance level.

Conservative investors might wait for a clear break above the $2.97 level (SMA 7) to confirm the pullback has ended. This approach sacrifices some potential upside but reduces the risk of catching a falling knife.

Day traders should monitor the $2.88-$2.92 range closely, as a break in either direction could trigger significant volume. The neutral RSI provides room for momentum to build in either direction.

Risk management remains crucial given the mixed technical signals. Position sizes should account for potential moves to the $2.51 support level, representing roughly 13% downside from current levels.

Conclusion

XRP price faces a critical juncture at $2.88, with technical indicators showing mixed signals despite positive fundamental developments. The Ripple technical analysis suggests a healthy pullback following recent gains, with support levels holding firm. Traders should watch for signs of stabilization above $2.88 or a potential bounce from the $2.78-$2.80 support zone over the next 24-48 hours. The partnership announcements provide a solid foundation for future growth, but near-term price action will likely depend on broader market sentiment and Bitcoin’s direction.

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