Despite major bullish headlines, XRP is facing intense downside pressure, with the token down nearly 5% in the last 24 hours and 8.5% over the past week. Multiple EMA death crosses have also formed in recent days, reflecting the sustained weakness.
Even with announcements like a $300 million investment from a Chinese AI firm and a $121 million treasury raise led by Saudi-linked VivoPower, the technicals suggest sellers remain firmly in control for now.
XRP Enters Oversold Territory
XRP’s Relative Strength Index (RSI) has dropped significantly to 32.32, down from 48.68 just one day earlier—marking a sharp deterioration in short-term momentum.
This steep decline reflects intensified selling pressure, pushing XRP close to the oversold threshold without fully breaching it.
Interestingly, XRP’s RSI has not fallen below 30 since April 7, suggesting that while recent corrections have been sharp, they haven’t yet triggered the deeply oversold conditions seen during more severe market pullbacks.
The current reading near 30 indicates that XRP is nearing a potential exhaustion point in the downtrend. If buyers step in, the price could stabilize or attempt a rebound.
That bad momentum comes even after a Chinese AI Company announced it plans to invest up to $300 million in XRP, and after VivoPower raised $121 million for XRP Treasury backed by a Saudi Royal.
XRP RSI. Source: TradingView.
The RSI is a widely used momentum indicator ranging from 0 to 100, designed to measure the speed and magnitude of price movements. Readings above 70 typically indicate overbought conditions and potential for a price pullback, while readings below 30 signal oversold conditions and possible price recovery.
With XRP hovering just above that oversold threshold, the market is at a crossroads: further downside could push RSI below 30, attracting attention from technical traders anticipating a bounce.
At the same time, stabilization at current levels could prevent deeper losses.
Given that XRP hasn’t broken below 30 in nearly two months, a dip below that level now could trigger renewed volatility—either drawing in bargain hunters or accelerating bearish momentum if support levels fail to hold.
XRP DMI Signals Strong Bearish Trend as ADX Surges Above 34
XRP’s Directional Movement Index (DMI) reveals a significant shift in trend strength and momentum, with the ADX rising to 34.78, up from 27 just a day earlier.
The ADX, or Average Directional Index, measures the strength of a trend without indicating its direction—readings above 25 typically suggest a strong trend, and those above 30 indicate a very strong one.
The sharp increase in ADX confirms that the current trend is intensifying. However, the direction of that trend is made clear by the movement of the directional indicators: +DI has plunged to 8.57, while -DI has surged to 32.
XRP DMI. Source: TradingView.
This widening gap between the directional indicators highlights a strong bearish trend in play. The falling +DI means that bullish momentum is weakening rapidly, while the rising -DI shows that selling pressure is accelerating.
With -DI now significantly higher than +DI and the ADX confirming the strength of this move, XRP appears to be firmly in a downtrend.
Unless there’s a sudden reversal in buying interest, the current setup points to continued downside pressure in the near term, reinforcing what other indicators like the RSI have already signaled.
XRP Risks Dropping Below $2 as Bearish Momentum Builds
XRP’s exponential moving averages (EMAs) have flashed multiple death crosses in recent days, reflecting sustained downward pressure as the token struggles to regain traction below the $2.50 mark.
These bearish crossovers—where short-term EMAs fall below long-term EMAs—indicate a weakening trend and align with XRP’s recent inability to break back into bullish territory.
If the correction deepens, XRP could retest support at $2.07, and a failure to hold that level would open the door for a drop below $2, a price not seen since April 8. This would likely confirm a broader shift in market sentiment and potentially accelerate bearish momentum.
XRP Price Analysis. Source: TradingView.
Still, the outlook could shift if buyers regain control and XRP manages to reverse the trend. In that case, $2.26 stands out as a key resistance level; a successful breakout there could signal renewed strength and bring the next upside targets at $2.36, $2.47, and even $2.65 into focus.
These resistance levels would need to be cleared with convincing volume to invalidate the current bearish EMA structure.
Until then, the multiple death crosses serve as a warning that downward pressure remains dominant unless bulls stage a strong recovery.
