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Ripple’s XRP token is undergoing a price correction after its recent rally was stopped at the $3.6 resistance level. Despite the downward movement, XRP is still clinging to a key support zone, leaving traders wondering whether bulls will return or bears will take over.
XRP Drops After Rejection at $3.6
After reaching a local high of $3.6, XRP began a correction phase marked by a consistent pattern of lower highs and lower lows. This downtrend shows increasing pressure from sellers, pushing the token’s price down toward the $3 support level. This level is critical — a breakdown below it could lead to further losses, with the next major support sitting at $2.7.
XRP’s latest price behavior signals a notable shift in market sentiment. Traders who rode the wave of XRP’s earlier gains are now stepping back, while sellers are gaining ground. The current correction is testing the strength of previous support zones and could define XRP’s short-term trend.
Technical Indicators Confirm Bearish Momentum
The technical outlook for XRP has also turned bearish. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have moved into negative territory. The MACD, which tracks the momentum and potential trend changes, is showing clear signs of weakness. Similarly, the RSI, which measures the strength and speed of price movements, continues to trend lower. This combination confirms the selling pressure and lack of bullish momentum.
With neither indicator suggesting a reversal, XRP may continue its downtrend unless buyers step in at key support levels.
Volume Profile Highlights Seller Dominance
Another signal confirming the bearish trend is the recent volume data. Over the past 15 days, XRP has closed five consecutive 3-day candles in red — a clear sign that sellers are currently in control. This level of sustained selling pressure hasn’t been seen since before XRP’s major rally earlier this year.
However, there’s a twist. The volume profile itself is making lower lows. This could be interpreted as a sign of seller exhaustion, meaning the bears may be running out of steam. If this trend continues, it could set the stage for buyers to re-enter the market — especially if XRP manages to defend the $3 support level.
What to Watch This Week
XRP traders should keep a close eye on a few critical price zones and technical signals in the coming days:
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Support Level at $3: This is the current battleground. If XRP holds this level, it might bounce back. A break below it, however, could see XRP fall to the next key support at $2.7.
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Resistance Level at $3.6: This remains the primary obstacle for any bullish recovery. XRP would need to break and hold above this level to reverse the current trend.
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MACD and RSI Trends: Continued movement in bearish zones suggests caution. A bullish crossover or RSI moving above 50 would be early signals of recovery.
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Volume Activity: If the trading volume starts increasing on green candles, this could indicate returning buyer interest.
Market Sentiment and Broader Outlook
XRP’s recent correction comes after an impressive rally that brought it to multi-year highs. Some retracement was expected, but the speed and persistence of the sell-off have caught many traders by surprise.
Still, XRP remains one of the leading cryptocurrencies by market cap and continues to benefit from strong community support and positive long-term developments related to Ripple’s ecosystem and legal clarity in the U.S.
Short-term volatility like this is common in the crypto market, especially after strong rallies. The current correction may be temporary if support at $3 holds. However, if the bears manage to break below this level, it could take some time before XRP finds new bullish momentum.
Final Thoughts
XRP is at a critical point in its short-term cycle. A defense of the $3 support level could offer a bounce-back opportunity, while a breakdown might signal a deeper pullback toward $2.7 or below. Traders should closely monitor technical indicators and volume data to gauge the next direction.
The coming days will be crucial in determining whether XRP can stabilize or whether sellers will continue to dominate. Until there’s a clear signal of strength from buyers, caution remains the best strategy for those considering entry.
