XRP eyes $2.40 support after TD Sequential sell signal triggers renewed selling pressure.
Falling wedge and EMA support hint at a possible 20% upside if XRP breaks above $3.07.
Legal updates and ETF approval odds shape XRP’s outlook ahead of the August 15 SEC deadline.
XRP has continued its downward movement after the TD Sequential indicator flashed a sell signal on the 3-day chart. The current retracement has placed attention on the $2.40 support level, which analysts consider a crucial zone for potential price stabilization. At the time of writing, XRP was trading at $2.87.
Technical Indicators Signal Caution as $2.40 Support Zone Gains Attention
According to analysis prepared by Ali Charts via X, XRP has shown sustained selling pressure after reaching a high near $3.80. The TD Sequential sell signal coincided with a bearish candle on the 3-day chart. The price is currently testing $2.87, near the $2.80–$2.95 support range.
https://twitter.com/ali_charts/status/1951865359671140409
Technical analysts note that a breakdown below this area could bring the $2.40 zone into focus. This level aligns with historical accumulation between $1.85 and $2.30, as indicated by the volume profile. Analysts at CryptoinsightUK have also pointed to this area as a potential buy zone.
A recent falling wedge pattern has emerged, suggesting a possible reversal. XRP bounced off the wedge’s lower boundary and the 200-period 4-hour EMA. A breakout above $3.07 could signal the end of the current retracement, with analysts expecting a 20% price move.
On-Chain Data and Legal Updates Add to Market Focus
According to an observation by CoinGlass, the derivatives market has seen over $41 million in liquidations, mostly from long positions. Open interest dropped to $7.79 billion, reducing leveraged exposure and suggesting a potential base for recovery.
Additionally, legal developments continue to influence XRP’s outlook. Ripple’s legal team and the SEC are expected to submit a status report by August 15. Former SEC lawyer Marc Fagel stated that both sides could drop appeals, which may release $125 million in penalties.
ETF optimism also remains in play. Bloomberg analysts estimate a 90% chance of approval for an XRP ETF by October. According to Egrag Crypto, maintaining closures above $2.80 could preserve a bullish structure, though a wick down to $2.34 may still occur.
The post XRP Tests $2.87 After Sell Signal on 3-Day Chart, $2.40 Support Level Could Be Next appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
