- XRP price action has printed a series of bearish daily candles, indicating a potential downtrend.
- XRP has dropped 5.4% in 24 hours and trades at $2.39.
- The eminent launch of RLUSD and approval of XRP ETFs under Trump could push XRP higher.
XRP has dropped 5.44% in the past 24 hours, trading at $2.39, holding a market cap of $136.44 billion. This decline moves XRP out of the top three cryptocurrencies, sliding to be the fourth-largest by valuation.
While XRP rallied to $2.70 during the recent market upswing, it failed to sustain the momentum, retreating from the $3 milestone. CoinMarketCap data shows that XRP remains up 320% over the last 30 days, despite undergoing what analysts describe as a necessary correction.
Key Bearish Indicators for XRP
The daily chart reveals a downtrend forming as multiple candles closed below previous highs. This pattern signals reduced buying demand and increased profit-taking, which limits upward movement.
Another major bearish signal is the possibility of a bearish divergence on the MACD (Moving Average Convergence Divergence) indicator. The signal line and the MACD line are coming very close to each other and if the orange once jumps above the blue one, a correction can be expected.
XRP’s Profit-Taking Pressures
The Relative Strength Index for the XRP price action confirms a significant surge in the profit taking for the cryptocurrency as it dropped from massive overbought levels to a healthy reading of 66.95. It is clear that the buyers are overall in control but sellers are mounting.
The gradient of the RSI line also suggests a massive XRP sell-off going on at the time. The sharp gradient suggests that a retest of lower support levels is definitely possible. The nearest XRP support stands at $2.15 while another major support is at $1.30 price region.
Read also: Ripple CEO Meets Trump: How XRP’s $3 Surge Hints at a $30 Breakout
It is important to note that the firm behind XRP, Ripple, stands to gain a lot under the new administration of Donald Trump. The anticipated launch of Ripple’s RLUSD stablecoin by year-end could support XRP’s growth and market position.
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