XRP, a prominent cryptocurrency, has recently navigated a period of significant price volatility. After experiencing a notable four-day decline, the digital asset has shown signs of a potential rebound, capturing the attention of market participants.
XRP's Recent Price Action
XRP faced substantial selling pressure over the past week. It recorded a 10.03% drop in seven days. The cryptocurrency dipped below the closely watched $3 mark. This led to testing deeper support levels. Following four consecutive days of decline from July 30 to August 2, XRP initiated a slight rebound. Early Sunday trading saw the token bounce from a low of $2.72. It reached a high of $2.89. Despite this rebound, XRP remained down 1.53% in the last 24 hours. Buyers notably stepped in around the $2.72 level. This intervention sparked the current rebound.
Future Outlook and Key Factors
The recent price drop was significantly influenced by institutional selling. Crypto analysts reported whales offloading over 710 million XRP. Broader macroeconomic uncertainty also contributed to the overall market sell-off. On-chain data suggests $2.80 acts as a temporary buffer for XRP's price. However, stronger support is indicated below $2.48. Some analysts anticipate real support around the $2.55-$2.40 range. Traders are now closely monitoring immediate resistance levels. These critical levels are in the $2.90-$3.00 range. Overcoming this resistance will be crucial. It will determine if the current rebound transforms into a sustained rally. There is speculation that XRP could be forming a double bottom pattern. A confirmed close above $3.30 might validate a breakout. Such a breakout could potentially lead XRP to $3.60. Reclaiming the $3 level is considered the initial hurdle for further upside. Future movements will also depend on institutional inflows. Continued exchange outflows will be closely watched as well.
