XRP is currently trading at $3.01, with a 6.9% increase in the last 24 hours. However, it has decreased by 8% in the past week and 13.6% since July 28. The cryptocurrency lost the important psychological level of $3, which is now acting as resistance. Technical analysis suggests the downtrend hasn't stopped yet, with indicators like the Awesome Oscillator and DMI reinforcing a bearish trend.
Key Price Levels to Watch:
- Support Level:$2.6, which coincides with the Fair Value Gap and the peak of the old accumulation zone on the daily chart.
- Resistance Level: $3, a psychological level that has turned into resistance after being broken.
Technical Indicators:
- RSI Recovering from a local low of 45.12, indicating a neutral zone and potential decrease in selling momentum.
- Awesome Oscillator: Leaning towards the bears, suggesting short-term recovery potential is low.
- DMI:Confirming a strong downtrend with -DI and ADX above the 20 threshold
On-Chain Data:
- Selling Pressure: Still present, with significant profit-taking activity observed on July 23.
- Supply in Profit: Over 90% of holders are in profit, indicating potential selling opportunities.
Long-Term Growth Potential:
- MVRV Z-Score:Remains low, indicating the asset is not yet overvalued and has room for long-term growth.
- Attractive Entry Point:$2.6 could be an attractive entry point for long-term investors
