Home Technical Analysis Why XRP’s Crucial $3 Support Is at Risk Amid Weak Market Momentum
Technical Analysis

Why XRP’s Crucial $3 Support Is at Risk Amid Weak Market Momentum

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Why XRP’s Crucial $3 Support Is at Risk Amid Weak Market Momentum
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XRP is currently trading around $3.09, barely holding above the crucial psychological support level at $3.00. The chart reveals significant weakness as XRP struggles to break back above its 9-day and 21-day moving averages, which sit around $3.11–$3.13. Recent price action shows small, indecisive candles with momentum clearly losing steam.

The Relative Strength Index (RSI) presents an even more troubling picture, remaining stuck in the low 40s and signaling weak buying pressure without any clear signs of reversal. Should XRP fall below the critical $3 threshold, the next significant support zone appears at $2.80, with a further decline potentially targeting $2.50 as a realistic medium-term objective.

Bitcoin’s Consolidation Poses Additional Risk

The broader market context shows Bitcoin trading around $117,944, displaying clear consolidation patterns with notably low volatility. However, this consolidation lacks the bullish characteristics traders typically hope to see. Rather than pushing toward new highs, BTC has remained trapped in a tight range between $116,017 and $118,000, unable to achieve a meaningful breakout.

The 4-hour Bitcoin chart reveals multiple rejections near the $118,000 resistance level, with recent candles showing bearish tendencies. With RSI readings below 50, Bitcoin lacks the momentum necessary to spark a fresh altcoin rally. Market history suggests that when Bitcoin drifts lower during consolidation phases, it typically pulls altcoins down with it—particularly those already facing pressure like XRP.

Technical Analysis Reveals Concerning Patterns

Examining both XRP and BTC charts reveals several troubling patterns. Both cryptocurrencies are trading below their respective moving averages, indicating short-term bearish pressure across the board. RSI readings for both assets remain below 50, suggesting an absence of bullish momentum in the near term.

XRP sits precariously on top of major support, while Bitcoin maintains a position just slightly above its key floor level. If Bitcoin loses its $116,000 support, the entire cryptocurrency market faces risk of another significant decline. In such a scenario, XRP breaking below $3 would likely accelerate its descent toward $2.80, with potential further drops to $2.50 if market sentiment deteriorates.

Should a breakdown occur, XRP’s next cycle could mirror previous bearish phases. This would involve retesting the $2.50–$2.80 zones accompanied by heavy selling volume, with bearish momentum potentially driving RSI below 30 into oversold territory. A possible accumulation phase between $2.30 and $2.80 might emerge, potentially attracting long-term buyers back into the market.

The outcome largely depends on Bitcoin’s ability to maintain its current range or whether it experiences deeper declines. If BTC manages to stabilize and recover above $118,000, XRP may avoid a complete breakdown and could attempt to reclaim the $3.13 resistance level.

Broader Market Sentiment Implications

The technical weakness shown in both XRP and Bitcoin could signal broader cryptocurrency market vulnerability in the near term. If key support levels fail to hold, investor confidence may decline further as selling pressure intensifies across major digital assets.

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Written by
Logan Pierce

Logan Pierce is a U.S.-based crypto researcher and Web3 strategist with deep expertise in AI tools for crypto, Layer 2 scaling, DeFi, and on-chain analytics. With a background in software development and macro trend analysis, he breaks down complex blockchain topics into actionable insights. Logan regularly covers tokenomics, security, airdrops, and emerging technologies like zk tech, helping both beginners and advanced users navigate the evolving crypto landscape.

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