XRP Breaks Below $2.90 Support as $13.8M Outflows Signal Bearish Momentum

Quick Take

• XRP currently trading at $2.85 (-1.92% in 24h)
• XRP RSI at 40.83 signals bearish momentum building
• $13.8 million outflows and falling futures interest drive recent weakness

What’s Driving Ripple Price Today?

The XRP price faced significant pressure over the weekend as the token broke through the critical $2.90-$2.95 support zone that had been holding for several weeks. On-chain data reveals concerning trends with $13.8 million in net outflows from XRP wallets, while futures open interest dropped 12% to $7.76 billion, indicating reduced institutional confidence.

This bearish momentum comes despite Ripple’s positive announcement on September 15 regarding a $25 million investment in Accion Opportunity Fund and Hire Heroes USA. While this investment demonstrates Ripple’s commitment to social initiatives and could improve long-term sentiment, it has failed to provide meaningful support for the XRP price in the near term.

The disconnect between positive corporate developments and price action highlights how technical factors and market sentiment often override fundamental news in the cryptocurrency space. Traders are currently focused on the immediate support levels rather than longer-term adoption narratives.

XRP Technical Analysis: Bearish Signals Emerge

Ripple technical analysis reveals a concerning picture across multiple timeframes. XRP’s RSI of 40.83 sits in neutral territory but shows declining momentum, suggesting the recent sell-off could intensify if buying pressure doesn’t materialize soon.

The MACD indicator presents the most bearish signal, with the histogram at -0.0164 confirming negative momentum for Ripple. This divergence below the signal line typically precedes further downward moves, especially when combined with the current volume profile.

XRP’s position relative to Bollinger Bands tells an important story, with the token’s %B reading of 0.1973 placing it near the lower band at $2.77. This positioning often indicates oversold conditions, but in trending markets, prices can remain near lower bands for extended periods.

The moving average structure adds weight to the bearish case, as the XRP price now trades below all short-term averages. Ripple’s SMA 7, SMA 20, and EMA 12 all cluster around $2.96-$2.97, creating a significant resistance zone that bulls must reclaim to invalidate the current downtrend.

Ripple Price Levels: Key Support and Resistance

Critical Ripple support levels emerge at $2.70, which aligns with both immediate technical support and the lower Bollinger Band at $2.77. A break below this zone could accelerate selling toward the stronger support at $2.70, representing a potential 5% decline from current levels.

On the upside, XRP resistance forms a formidable wall between $2.96-$2.97, where multiple moving averages converge. The XRP/USDT pair must reclaim this level decisively to signal any potential reversal. Beyond that, traders should watch $3.19 as the next major hurdle, followed by the stronger resistance at $3.38.

The daily ATR of $0.12 suggests XRP typically moves about 4.2% per day, providing context for position sizing and stop-loss placement. Given the current volatility, swing traders should expect moves of $0.10-$0.15 in either direction on any given session.

Should You Buy XRP Now? Risk-Reward Analysis

Based on Binance spot market data, the current risk-reward setup favors patience over aggressive buying. Conservative traders should wait for a clear reclaim of the $2.96 resistance level before considering long positions, with stops below $2.70.

For aggressive traders willing to catch a potential bounce, the $2.70-$2.77 zone offers a compelling entry with tight risk management. However, any position should include a stop-loss below $2.65 to limit downside exposure if the Ripple support levels fail.

Dollar-cost averaging strategies may prove most effective in this environment, allowing traders to accumulate XRP gradually if the downtrend continues. The 52-week range of $1.80-$3.55 provides historical context, suggesting current levels offer reasonable value for long-term holders despite near-term weakness.

Position sizing becomes crucial given the conflicting signals between fundamental developments and technical weakness. Risk-averse traders should limit XRP exposure to 2-3% of their portfolio until clearer directional signals emerge.

Conclusion

The XRP price faces a critical juncture as technical indicators align bearishly despite positive corporate developments from Ripple. The break below $2.90 support, combined with significant outflows and declining futures interest, suggests further weakness toward $2.70 remains likely in the next 24-48 hours. Traders should monitor the $2.96 resistance level closely, as any reclaim could signal a potential reversal of the current bearish momentum. Until then, defensive positioning and patience appear most prudent for XRP holders.

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