Key Insights
- XRP is trading within a symmetrical triangle near $3.00, showing signs of consolidation after a sharp rally.
- Momentum has slowed as XRP struggles to break resistance, with RSI near neutral and volume continuing to fall.
- The technical structure remains vulnerable, and a close below $2.90 could trigger downside pressure and extend losses.
XRP has entered a pivotal stage after an earlier price rally that pushed the token above $3.50. The asset has since corrected and now trades near the $3.00 mark, where it faces strong technical resistance and a drop in market participation.
After reaching a multi-year high, XRP’s upward trend stalled. The price has consolidated in a narrowing range, forming a symmetrical triangle pattern on the daily chart. This setup typically signals upcoming volatility, with price direction uncertain until a clear breakout or breakdown occurs.
Technical Indicators Point to Weakening Demand
XRP currently holds above the 100-day EMA at $2.76 and the 200-day EMA at $2.49. While these moving averages offer support, the inability to surpass the $3.20 resistance zone suggests that bullish momentum is fading. The Relative Strength Index remains neutral at 48, highlighting a lack of directional strength and room for further decline.
Market structure is at risk of breakdown if XRP fails to hold above $2.90. A close below this level may confirm bearish sentiment and open the door for a deeper retracement. This could potentially erase a significant portion of gains made during the recent rally.
Volume Decline Highlights Waning Market Interest
Trading volume has declined sharply since the July rally. This reduction in activity often reflects declining investor interest and reduces the likelihood of a sustained move higher. Without fresh capital inflows, the triangle pattern may resolve to the downside, confirming the loss of buying pressure.
Despite short-term risks, XRP remains well above its spring lows and continues to trade above the 200-day EMA for the first time in years. This long-term technical achievement indicates structural resilience even as short-term momentum fades. However, the inability to achieve higher highs could further dampen bullish prospects if consolidation breaks lower.
