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XRP saw intense sales pressure by the end of July after the rally beyond $ 3. Since then the price has been withdrawn below this important psychological level – will bears stimulate prices even lower?
Ripple [XRP] has seen considerable losses as Bitcoin in recent days [BTC] was forced to beat a hasty retreat of the $ 119.8k. Since Monday on July 28, the BTC prices have fallen by 5%.
During this time, XRP descended 13.6%.
A critical breakdown was the loss of the psychological level of $ 3. This barrier, which had stalled previously in July XRP bulls, now acts as a renewed resistance.
A new push past $ 3 can be difficult, given the weight of selling and taking a profit above it.
Momentum cools, but the downward trend is
Source: XRP/USDT on TradingView
Technical analysis of the 24-hour graph showed that such a price bouncer was probably not imminent.
The A/D went down to show an increased sales volume last week, and the great Oscillator also emphasized Beerarish Momentum.
Of course the directional motion index reinforced this photo. The -Di and ADX both floated above 20, which confirms that the market remains in a strong downward trend.
With the structure still Bearish, XRP could dive further before buyers regain confidence.
However, one zone that is worth seeing is $ 2.6. This level overlaps with a real value gap and coincides with former range heights on the 1-day graph, making it a probably target in the short term.
Will XRP fall further than $ 2.6?
XRP investors moved the token to exchanges in unprecedented numbers, with a peak on July 23. This reflected intense sales pressure.
The Percent delivers in profit Was above 90%, which explained the sale. Since then, the change in the exchange of the net position has been moistened, but remained positive at the time of the press. The worst of the sale can be over.
Valuation shows headroom for growth
Source: Glass node
Another important statistics, the MVRV Z-score, remains well under historical peak levels, despite the rally beyond $ 3 in July. This suggests that XRP is not extremely overvalued.
Of course this opens the door for further benefit in the long term. If XRP visits $ 2.6 again, this can offer a strong access point for investors with a longer horizon.