The Ripple currency has experienced a sharp decline in recent days, as Bitcoin (BTC) had to retract from the $119,800 level. Since Monday, July 28, the value of Bitcoin has decreased by 5%, while the value of Ripple has dropped by 13.6%.
One concerning indicator is that XRP has lost the important psychological support level at $3, which served as strong support in early July, and has now turned into a new resistance area. It will not be easy to break this level again, as selling pressure and profit-taking above it remain intense.
The downward trend is not over yet.
Technical analysis on the one-hour chart shows that the likelihood of a short-term recovery is extremely low. The A/D line is gradually declining, reflecting a sharp increase in selling volume over the past week, while the Awesome Oscillator still favors the bears.
Source: Tradingview
The DMI indicator reinforces this trend: both the DI and ADX indicators exceed the 20 level, confirming that the market is still in a strong downward trend. In this context, XRP may continue to correct before buyers return to the market.
One important area is the $2.60 level, which coincides with the fair value gap and the peak of the previous accumulation zone on the daily chart. This could be a potential short-term bearish target.
Will XRP exceed the $2.6 level?
On-chain data shows that selling pressure is still present. XRP transfers to trading platforms peaked on July 23, indicating significant profit-taking. The supply-to-profit ratio at its current level exceeding 90% suggests that many holders are taking advantage of the situation to sell.
Source: Glassnode
Despite the net flow retreating towards the bottom, it remains positive, indicating that the selling trend continues. However, the most intense pressure may have subsided.
The evaluation shows that there is still room for growth.
The MVRV Z-Score, a measure of valuation relative to historical fair value, remains low compared to previous peaks, even after XRP surpassed the $3 barrier in July. This indicates that the asset is not overvalued, opening up prospects for long-term growth.
Source: Glassnode
If XRP indeed returns to the $2.60 area, this could be an attractive entry point for investors with a long-term vision.
#تابعني_لحصولك_علي_المزيد_من_المعلومات