Ripple Price Analysis: XRP Must Maintain This Level to Avoid Major Correction

The native token of Ripple has extended its bullish momentum in line with Bitcoin's continued strength, maintaining a pronounced upward trend against both USDT and BTC. However, recent price action suggests the market may be pausing for a correction or consolidation, as signs of exhaustion begin to appear on both currency pairs.

Technical Analysis

USDT Pair

XRP has recently surpassed the psychological resistance level of $3.00 after a strong price increase that began in early July. The 100-day moving average (in green) and the 200-day moving average (in orange), which are currently sloping upwards and forming a bullish crossover around the $2.50 level, have provided the foundation for this move. The market structure has also clearly shifted towards a bullish direction, as indicated by the yellow curved arrow.

Currently, the price is fluctuating above the important support area of $3.00. The price being rejected from the $3.40 level, combined with the RSI dropping below the overbought threshold (currently around 59), indicates that the short-term bullish momentum is weakening.

As long as the $3.00 level is maintained, buyers may find a foundation to continue the upward trend. However, if the price breaks below this level, it may head towards the $2.50 area, where the converging moving averages could serve as an important dynamic support.

BTC Pair

The XRP/BTC chart reflects a similar trend, with prices surging since early July and surpassing both the 100-day and 200-day moving averages, which are both around the 2,400 SAT level. This bullish move faced resistance at 3,000 SAT, where the upward momentum temporarily stalled.

Currently, the market is retesting the reasonable bullish value gap near the 2,700 SAT mark. If this area can provide support, it could serve as a launchpad for another attempt toward the resistance level of 3,200 SAT, with breakout potential. Conversely, failing to hold the FVG could open the door for a deeper correction, targeting a price drop around 2,400 SAT or possibly the important support level of 2,000 SAT.